Permanent Residence In Cyprus For Indian Citizens: Complete Guide

The Cyprus Permanent Residence Program allows Indian citizens to enter and stay in Cyprus with no limitations. Indian citizens can get Cyprus permanent residence by investing at least €300,000 (≈ ₹26.7 million) in real estate or securities. Cyprus offers numerous benefits, including favourable tax rates, investment opportunities, and the possibility of obtaining European Union citizenship.

An application for Cyprus permanent residence is considered within two months and can be done remotely. Investors’ spouses and children may participate in the program. After living in the country for more than 5 years, an investor acquires citizenship or ordinary permanent residence. In that case, they may return the investment, for example, by selling their properties.

8 Reasons for Indians to get Cyprus permanent residence

Cyprus is a popular destination for immigration. The island is a member of the European Union but has yet to be part of the Schengen zone; you still need a visa to enter the Schengen countries, but the application procedure is accelerated. Permanent residence in Cyprus may be interesting for Indian investors for many reasons:

1. Tax optimization . Cyprus offers a favourable tax environment for Indian investors. Permanent residents are exempt from paying taxes on global income, including dividends and capital gains. Furthermore, Cyprus has no inheritance tax and low income and property tax rates. The corporate tax rate is also one of the lowest in Europe at 12.5%.

2. Passive income. Indian nationals can earn income from investments in real estate. Every year, prices for real estate in Cyprus increase by 1-4%. The same yield is applied to residential property leases.

3. Prospect of obtaining an EU passport . Permanent residence is issued for life. Five years after receiving this status, Indians can apply for Cyprus citizenship and become full-fledged citizens of the European Union. With a Cyprus passport, you can travel without visas to 170+ countries, including the EU members and the UK, compared to about 60 visa-free countries with Indian citizenship.

Note that India does not recognize dual citizenship. Switching to a Cyprus passport would benefit those Indian nationals who have international business and thus have to travel a lot.

4. Opportunity to own a business. Unlike under many other investment immigration programs, Cyprus permanent residents can purchase shares in local businesses, open their own companies or transfer operating companies to the island’s jurisdiction.

5. Moving to Cyprus or creating a “safe haven”. Indian investors can visit Cyprus anytime and stay as long as they like. They can either move to the country or come up with a Plan B that includes housing and financial safety cushions in Cypriot banks, benefiting from the country's stability.

6. High quality of life. Cyprus offers a high standard of living and has been recognized as a developed economy by the International Monetary Fund since 2001. The country ranks 29th in the world according to the Human Development Index. It is also 28th in the world in the 2022 Human Freedom Index.

7. Quality healthcare and education. Indians with permanent Cyprus residence gain access to education in local schools and universities and medical help from local facilities.

8. No language barrier. You do not need to know Turkish and Greek. Language is not a barrier in Cyprus, as English is widely spoken. Around 80% of the population can communicate in English, making it convenient for Indian citizens to adapt and interact with locals.

Requirements for obtaining Cyprus permanent residence

Indian citizens interested in obtaining permanent residence in Cyprus need to fulfil the following requirements:

The principal applicant and their spouse must be over 18 years old and have no criminal records.
There should be no sanctions, restrictions, or bans on entry to EU countries and the UK for the applicant and their spouse.
The applicant must provide evidence of a legitimate source of income and have an impeccable personal and business reputation.
Applicants cannot work for hire in Cyprus, and they can only invest money received from foreign sources. But they may own a Cypriot company: for example, the one in which they invest money to obtain permanent residence.
The principal applicant must earn at least €50,000 (≈ ₹4.5 million) annually outside of Cyprus. Additional income requirements apply for each dependent, with an increase of €15,000 (≈ ₹1.3 million) for the spouse and €10,000 (≈ ₹890,000) for each child.
Applicants must open a deposit in a Cypriot bank and maintain a balance of €50,000 (≈ ₹4.5 million) for three years.
Investors must purchase or rent property in Cyprus. There are no specific cost requirements, but having an address in Cyprus is necessary. Investors who invest money in commercial real estate or local securities must still have an address in Cyprus.

It is not mandatory to reside permanently in Cyprus. However, residents must visit the island at least once every two years to maintain their permanent residence status. Failure to do so may result in the cancellation of their status. It is important to note that the program’s terms prohibit acquiring a residence permit in another country.

To maintain permanent residence, Indian residents must keep their investments and update medical insurance annually. In addition, each family member above 18 must renew their criminal record every three years.

Indian investors can secure permanent residence in Cyprus for themselves and their family members, including:

a spouse;
children under 18;
‍unmarried student children under 25 who are financially dependent on the principal applicant;
children of any age with physical or mental disabilities.

It is possible to include an adult and financially independent child in the application. However, an additional €300,000 (≈ ₹26.7 million) must be added to the investment amount. Furthermore, the adult child must have an annual income of €30,000 (≈ ₹2.7 million) or more.

The status of permanent residence in Cyprus is granted to the investor's family for life. However, future sons-in-law, daughters-in-law, and grandchildren do not inherit this status. They would need to apply for a temporary residence permit instead.

Documents needed when applying for permanent residence in Cyprus

For Indian citizens to apply for Cyprus permanent residence, the following documents must be prepared and submitted:

a completed MIP1 application form;
originals and copies of valid passports of all the applicants;
a main applicant’s biography;
a declaration confirming an annual income of at least €50,000 (≈ ₹4.5 million);
proof of investment;
proof of permanent address in Cyprus: certificate of ownership, sales or lease agreement;
a statement on the absence of employment in Cyprus;
a certificate of no criminal record for the main applicant and their spouse;
a marriage certificate;
a birth certificate;
medical insurance for the whole family.

Ways to get Cyprus permanent residence for Indian investors

Indian investors can choose from several investment options of €300,000 (≈ ₹26.7 million): purchasing residential or commercial real estate, acquiring shares of Cypriot companies or buying units of local investment funds.

If they choose to invest in non-residential property, they will also have to buy or rent housing on the island because having an address in Cyprus is necessary. There are no space or cost requirements for property to live in.

Investments can be returned only after the expiration of the permanent residency or upon acquiring citizenship.

Residential properties . The investor can buy one or two new properties with a total value of €300,000 (≈ ₹26.7 million) plus VAT. The standard VAT rate is 19%. It is reduced to 5% if the investor plans to live there and not rent it out. It is not possible to buy a resale property.

An investor can buy real estate as an individual or through a company registered to the applicant or the applicant’s spouse. The applicant or the spouse must solely own this company.

Commercial real estate. The investor can buy one or two commercial properties with a total value of €300,000 (≈ ₹26.7 million) plus VAT. The property can be new or for resale. Offices, shops, hotels or a combination worth at least €300,000 (≈ ₹26.7 million) qualify as commercial properties under the option.

Shares of Cypriot companies. Equity investment in a Cypriot company that conducts business and employs at least 5 people in Cyprus.

Shares of Cypriot investment funds. Investments in units of Cypriot investment funds in the form of AIF, AIFLNP, and RAIF.

How to obtain Cyprus permanent residence by investment as an Indian citizen

The process for obtaining permanent residence in Cyprus through investment involves the following steps:

Due Diligence. To increase the chances of approval, a certified Anti Money Laundering Officer checks the investor’s documents and searches for information about them in international databases. The check is confidential and takes only one business day. Thanks to this procedure, the rejection risk reduces to 1%.
Preparing the documents. After passing Due Diligence, applicants start collecting documents for the application. When all the documents are ready, they are translated and apostilled.
Opening an account in a Cypriot bank. Investors will need to go through bank Due Diligence and prove the legality of the origin of the money.
Fulfilling the investment condition. When an investor buys a property, they transfer €300,000 (≈ ₹26.7 million) and VAT to the developer. Property documents or sales contracts must be submitted to the Cyprus Land Department, including an application to reduce the VAT rate to 5%.
Submitting an application in Cyprus to the Civil Registry and Migration Department. When applying, a fee of €500 (≈ ₹44,500) will be charged for spouses and children under 18. For children under 25, an additional €500 (≈ ₹44,500) per person must be paid. Applicants will also need to pay a registration fee of €70 (≈ ₹6,200) per person.
Processing of the application. The Migration Department will review the application and forward it to the Secretary of the Ministry of the Interior, who will decide within two months.
Obtaining permanent residence. After the approval of the application, the investor and his family will have to visit Cyprus within a year to submit biometric data and obtain a permanent residence permit in Cyprus.

Main points about Cyprus permanent residence for Indians

There are several reasons for Indian citizens to choose Cyprus: favourable tax rates, the high level of life, the business climate and the prospect of getting an EU passport, and the great environment. Also, the investment program allows you to add family members: spouse, children and parents.

The fastest way to get PR for Cyprus is by investment. To participate in this program, you must invest €300,000 (≈ ₹26.7 million) in the Cyprus economy. You can buy residential properties, commercial real estate, shares or stocks of Cyprus companies.

The main steps to getting a residence permit through investment are preliminary Due Diligence, document collection, fulfilment of the Program conditions and obtaining a residence card.

By following these guidelines, Indian citizens can navigate the process of obtaining permanent residence in Cyprus and enjoy the benefits of living in this beautiful Mediterranean island nation.

Disclaimer: The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.