Cyprus, known for its strategic location, robust economy, and high quality of life, has emerged as a prime destination for individuals seeking residency. The process of acquiring a residence permit through company registration offers a unique pathway, combining business opportunities with the benefits of living in an EU member state.
Getting a residence permit in Cyprus through company registration
Understanding this procedure is crucial for navigating the legal and financial requirements successfully. Below, we’ll cover everything you need to know, including:
- Benefits of obtaining a residence permit in Cyprus.
- Criteria to qualify for a residence permit.
- A step-by-step application guide.
- Required documents.
- Common pitfalls to avoid.
Benefits of obtaining a residence permit in Cyprus
Definitely, obtaining a residence permit in Cyprus offers significant advantages, depending on both your personal and professional goals. Investors gain access to the European market, facilitating business operations across EU member states while enjoying the Mediterranean lifestyle known for its quality of life.
Cyprus offers appealing tax benefits as well, including favorable tax rates for individuals and companies, alongside comprehensive social security coverage. Corporate tax is only 12.5% and the first €19,500 of personal income is tax-free. The healthcare and education systems are accessible to residents, ensuring a high standard of living.
Furthermore, after seven years of residence, individuals are eligible for citizenship, which comes with the privilege of visa-free or visa-on-arrival access to over 170 countries worldwide as an EU citizen. This pathway to citizenship not only enhances global mobility but also integrates the individual into the broader European community.
The program extends to the applicant’s spouse, minor children, and dependent relatives, allowing them to reside in Cyprus and access similar benefits as the primary residence permit holder.
Criteria for obtaining a residence permit
To obtain a residence permit in Cyprus, non-EU nationals and their families have specific criteria they must meet. These criteria ensure applicants can support themselves during their stay and contribute positively to Cypriot society:
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- Investment in real estate, business, or shares: The primary criterion involves making a significant investment in Cyprus. The minimum investment requirement often starts from €300,000. This investment can take various forms, including purchasing real estate, investing in Cypriot companies, or buying shares of Cyprus Collective Investment Funds (AIF, AIFLNP, RAIF).
- Adequate annual income: Applicants must demonstrate an annual income of at least €50,000. This amount increases by €15,000 for the spouse and €10,000 for each minor child (up to 25 years). The income can come from various sources, including salaries, pensions, stock dividends, and rents earned abroad.
- Financial stability: It’s essential to prove financial stability through bank statements or other financial documents. This showcases your ability to support yourself and any dependents without needing employment within Cyprus.
- Health insurance: Applicants and their dependent family members must have valid health insurance covering inpatient and outpatient care.
- Clean criminal record: A certificate of no criminal record from the country of origin and the country of residence (if different) is required for the applicant and the spouse.
- Two/Multiple families: It’s possible to also obtain a residency permit for an adult child (with or without a family) by purchasing a property of up to €600,000. However, each family has to prove an income of at least €50,000 + €15,000 for the spouse and €10,000 for each additional dependent child.
Step-by-step guide for the process of getting residence permit In Cyprus
Here’s a detailed, step-by-step guide to obtaining a residence permit in Cyprus through company registration:
- Assessment of eligibility. Before initiating the application, assess your eligibility based on the investment requirements (minimum €300,000 investment in real estate, business, or shares) and financial stability criteria (annual income of at least €50,000, plus additional for dependents).
- Company registration. Register your company in Cyprus through the Department of Registrar of Companies and Official Receiver . This step involves choosing a company name, preparing company articles of association, and submitting the necessary documentation.
- Investment execution. Make the required investment in real estate, Cypriot companies, or shares of Cyprus Collective Investment Funds. Ensure that all transactions are documented and traceable from foreign accounts to demonstrate the source of funds.
- Opening a bank account. Open a Cypriot bank account to facilitate the investment and prove financial stability. This account will also be used for depositing the minimum capital requirement of €30,000 for three years.
- Health insurance. Obtain comprehensive health insurance coverage for you and your dependents, valid in Cyprus.
- Criminal Record Certificate. Secure a clean criminal record certificate from your country of residence to submit with your application.
- Application submission. Compile the required documents, including proof of investment, bank statements, health insurance, and a criminal record certificate. Submit your application to the Civil Registry and Migration Department , either directly or through an authorized representative.
- Biometric data registration. Upon notification from the Civil Registry and Migration Department, you and your dependents must visit Cyprus to provide biometric data (fingerprints and photographs) for the residence permit card.
- Application review. During this time, the Civil Registry and Migration Department assesses your application against the criteria for permanent residency.
- Collection of residence permit. Once approved, you will be notified to collect your residence permit card from the Civil Registry and Migration Department. This permit typically needs to be renewed every five years.
- Maintaining residency status. To maintain your residency status, you must adhere to the regulations, including not being away from Cyprus for more than two years consecutively.
Until recently, the application process took up to 2 months. However, under the strain of a high volume of requests, the process may currently take up to 6, or even 8, months.
Necessary documents
For a successful application for a residence permit in Cyprus through company registration, the following documents are essential:
- Application forms: Complete the relevant immigration forms provided by the Civil Registry and Migration Department.
- Passport: Valid passport copies of all applicants.
- Bank statements: Recent statements to prove financial stability.
- Employment contracts (if applicable): For proof of steady income.
- Marriage and Birth Certificates: For family members included in the application.
- Photos: Passport-sized photographs for each applicant.
- Medical insurance: Comprehensive health insurance covering all applicants.
- Proof of investment: Include title deeds or sale contracts of property and evidence of transferred funds from abroad for the investment.
Company registration for obtaining a residence permit
Also, ensure that you have all the necessary documentation proving your investment or successful registration of a Cypriot company:
- Compliance with Cyprus’s Substance rules, ensuring the company has a physical presence and conducts significant economic activities in Cyprus.
- Demonstrating stable income to support oneself and dependents.
- Securing accommodation in Cyprus, either through rental or ownership.
Common pitfalls to avoid
Several common pitfalls can hinder the process when pursuing a residence permit in Cyprus through company registration. Avoid these to ensure a smooth application:
- Maintaining investment and income: Ensure that the investment level (typically starting at €300,000) and the annual income (minimum of €50,000 plus additional for dependents) are maintained throughout the process. Failure to do so can result in the revocation of the residence permit.
- Health insurance and criminal records: Comprehensive health insurance for you and your dependents is mandatory, and a clean criminal record is required. Non-compliance with these requirements can lead to application denial.
- Timeliness: The timely submission of documents and biometric data is crucial. Delays can cause unnecessary setbacks or even jeopardize the application’s success.
You can find a video where we talk to a specialist in migration issues about a residence permit in Cyprus and get answers to some of the most frequently asked questions here.
Book a call with YouReg right now and get a free consultation regarding setting up your business in Cyprus today and don’t be afraid about double taxation!
