Cyprus Golden Visa 2024

Cyprus Golden Visa Programme Guide for 2024

Renowned for its stunning beaches and warm Mediterranean climate, Cyprus is often regarded as an ideal destination for non-EU nationals seeking permanent residence.

The island’s Golden Visa program offers an attractive pathway to residency, allowing investors and their families to enjoy the benefits of living in Cyprus. By making a qualifying investment in real estate or other approved assets, applicants can secure residency rights with relatively quick processing times.

The program not only provides access to a high quality of life in a safe and beautiful environment but also grants visa-free travel within the Schengen Area for those who obtain Cypriot citizenship after a period of residency. Cyprus's Golden Visa is especially appealing for those looking to benefit from favorable tax regimes and a strategic location at the crossroads of Europe, Asia, and Africa.

Break Front has a team of legal experts that can guide you through the process.

Country Information

Population: Approximately 1.2 million (as of 2023).
Economy: Cyprus has a diverse economy driven by sectors like tourism, financial services, real estate, and shipping. Its EU membership and favorable tax regime make it a prime destination for foreign investment, particularly in the financial and business services industries.
Government Type: Unitary presidential republic.
Official Languages: Greek and Turkish (English is widely spoken).
Geographic Position: Cyprus is an island nation located in the Eastern Mediterranean, south of Turkey and west of Syria and Lebanon.
Currency: Euro (€).
Capital: Nicosia (Lefkosia).
Time Zone: Eastern European Time (EET), UTC +2; Eastern European Summer Time (EEST), UTC +3 during daylight saving time.
Climate: Cyprus enjoys a Mediterranean climate, with hot, dry summers and mild, wet winters.

Cyprus Golden Visa Programme Info

The Cyprus Golden Visa program is an investor immigration scheme that offers qualifying individuals the opportunity to gain residency and citizenship in the Republic of Cyprus in exchange for a financial contribution to the economy. This typically involves investments in real estate, shares in a business that employs at least five people, or units in a Cyprus Collective Investment Organization.

Previously, the program consisted of two distinct options: one for individuals seeking permanent residency and another for those aiming to acquire citizenship. The primary differences between these two programs were the minimum required investment amounts and the residency duration. However, as of 2020, the Cyprus citizenship by investment scheme has been discontinued and is no longer available.

Why Cyprus?

While there are numerous citizenship by investment programs available worldwide, including the Luxembourg Investor Visa, Investor Visa Belgium, and Malta Citizenship By Investment, Cyprus stands out for its unique blend of appealing benefits, making it one of the top investment schemes to consider.

Cyprus not only enjoys a strategic location for international business investors, but it also offers exceptional living standards, a low cost of living, leading educational institutions, high-quality healthcare systems, and tax-friendly policies (for instance, there is no inheritance tax) – all of which contribute to the program’s attractiveness.

Investment options

Invest in the Share Capital of a Cypriot Company

To qualify, an investor must make an investment of at least €300,000 in the share capital of a company registered in Cyprus, which must create employment for at least five people.

Invest in Units of a Cyprus Collective Investment Organization

Applicants can also qualify by investing in units that are part of a Cyprus Collective Investment Organization. These funds are regulated by the Cyprus Securities and Exchange Commission and managed by professional fund managers.

By partnering with a fund manager, applicants can feel confident that their investments are being effectively managed, particularly in Cypriot start-ups or medium-sized projects with significant growth potential. Additionally, other investment funds focused on sectors such as energy, industry, technology, and real estate are also eligible for the program.

Purchasing a Residential Property

To qualify for residency through property investment, an investor must purchase either a residential or commercial property. For residential purposes, the foreign investor is required to buy a property with a minimum value of €300,000, excluding VAT. The first €200,000 plus VAT must be invested before submitting the application. To finalize the purchase, the applicant must demonstrate that the funds were transferred to Cyprus from abroad and were not borrowed from within the Republic. Additionally, the funds must be deposited in a Cypriot financial institution and held in the vendor’s bank account.

Purchasing a Commercial Property

To qualify through commercial property investment, the investor must purchase property such as an office, shop, hotel, or similar development with a minimum value of €300,000, excluding VAT. The property or properties acquired can later be resold.

Requirements for Cyprus Golden Visa

New revisions took effect on May 3, 2023.

The updated requirements for the Cyprus Golden Visa are as follows:

Parents and in-laws of the applicant are no longer eligible for inclusion.
Applicants must provide proof of a clean criminal background and demonstrate that they do not pose a threat to public security or order.
A declaration of intent not to work in the Republic must be completed, except for those serving as Directors in a company.
Applicants must visit Cyprus at least once every two years and provide proof of their physical presence.
The required annual income (generated abroad) is now set at €50,000 per applicant, with an additional €15,000 required for the applicant’s spouse, and a further €10,000 for each dependent. (Previously, the required annual income was €30,000 per applicant.)
A new mechanism has been introduced to ensure stricter compliance, requiring applicants to annually submit evidence to the Civil Registry and Migration Department confirming that (i) the investment is maintained, (ii) the defined required income for the applicant and dependents is still met, (iii) the applicant and dependents maintain active insurance coverage, and (iv) the applicant provides a clean criminal record certificate from both their country of origin and Cyprus.

Tax system

1. Personal Income Tax

Progressive Tax Rates: Cyprus applies progressive tax rates on personal income as follows:
- Income up to €19,500: 0%
- €19,501 – €28,000: 20%
- €28,001 – €36,300: 25%
- €36,301 – €60,000: 30%
- Over €60,000: 35%
Non-Domiciled Individuals: Cyprus offers favorable tax treatment for non-domiciled individuals, exempting them from certain taxes on foreign income, like dividends and interest.

2. Corporate Tax

Standard Corporate Tax Rate: Cyprus has a low corporate tax rate of 12.5%, one of the most competitive in Europe.
Tax Exemptions: Various exemptions are available for dividends, capital gains from the sale of securities, and profits of foreign permanent establishments.

3. Value-Added Tax (VAT)

Standard Rate: 19%.
Reduced Rates: 9% for services like transportation and accommodation, and 5% for essentials like food and medicines.
Zero Rate: Applies to exports and international transport.

4. Capital Gains Tax

Rate: 20% on gains from the sale of immovable property located in Cyprus or the sale of shares in companies holding such property.
Exemptions: Gains from the sale of securities (shares, bonds) are exempt from capital gains tax.

5. Special Contribution for Defence (SDC)

Applies only to Cypriot residents domiciled in Cyprus and includes taxes on:
- Dividends: 17%.
- Interest: 30%.
- Rents: 3% on 75% of rental income.
Non-Domiciled Residents: Non-domiciled individuals are exempt from SDC, making Cyprus attractive for foreign investors.

6. Immovable Property Tax

Abolished: Cyprus abolished immovable property tax as of 2017, further enhancing its appeal to real estate investors.

7. Social Insurance Contributions

Employer Contribution: 8.3% of the employee’s salary.
Employee Contribution: 8.3% of their gross salary.
Self-Employed: 15.6% of gross income.

8. Double Taxation Treaties

Cyprus has an extensive network of over 60 double taxation agreements with other countries, helping to avoid double taxation on foreign income.

9. Intellectual Property (IP) Regime

Cyprus has an attractive IP box regime, offering an effective tax rate of 2.5% on profits derived from intellectual property, making it appealing for tech and innovation-driven companies.

10. Tax Incentives for Foreign Investors

Cyprus offers a number of tax incentives for foreign investors, including:
- No withholding taxes on dividends, interest, or royalties paid abroad.
- Tax exemptions for non-domiciled individuals on certain foreign income.
- Incentives for expatriates relocating to Cyprus, such as a 50% tax deduction on salaries over €100,000 for the first 10 years of employment.

Required documents

The documents required when submitting your application to the migration department will vary depending on the investment route you choose for permanent residence.

Generally, the following documents are needed:

Proof of investment
Proof of the legitimacy of funds
Your CV, detailing your professional and/or academic achievements
Civil documents, such as birth and marriage certificates
Passport-sized photos
Certified copies of your passport
A clean criminal record, showing no prior criminal history
If dependent children are included, proof of their studies or other reasons for their dependency
Title of ownership or a sales contract, along with proof of payment for the property or rental agreement – original or true copy
Official statements by the applicant and their spouse confirming that they do not intend to undertake any employment in Cyprus, except for serving as a Director in a company

Additional documents may be required at the discretion of the relevant authorities. It is advisable to seek professional guidance from an immigration service, as qualified advisors can provide you with the full details of the program criteria.

Cyprus Visa Process

Make the Investment

Submit your application

Biometric visit and residence permit issuance

Citizenship application

Make an Investment

Choose your preferred investment route to secure permanent residency and proceed with your investment.
Submit Your Residency Application

After gathering all the necessary documentation, submit your application and expect a processing time of approximately two months for approval.
Attend a Biometrics Appointment

Upon receiving your Letter of Approval, attend a biometrics collection session to provide your personal data in person.
Obtain the Permit

Following your biometrics appointment, pay the required government permit fee and anticipate receiving your Cyprus permanent residency permit within a week. This permit is renewable for up to five years, after which you can apply for permanent residency.
Apply for Citizenship

After obtaining your permanent residence permit and holding it for seven years, you are eligible to apply for citizenship, provided you have lived in Cyprus continuously for the year immediately preceding your application.

Why choose Break Front?

Global expertise with local insight: A team of seasoned local case executives, immigration lawyers, and investment specialists.
Independent service: We are not affiliated with any marketing agencies or specific projects. You’ll have access to all eligible Golden Visa options, allowing you to choose the best path for your needs, supported by the legal due diligence services of a reputable law firm.
High approval: We pride ourselves on high approval rates while having successfully assisted hundreds of clients from over 25 countries.
Comprehensive support: Our dedicated onboarding and immigration teams guide you through the entire process, providing a seamless experience with a single point of contact.
Transparency: Our fees are clearly outlined and comprehensive, with no hidden costs involved in the entire process.
Privacy: Your personal information is securely stored in a GDPR-compliant database.