Temporary and Permanent Residency in Cyprus: Differences and Requirements

The most common question when relocating or moving to Cyprus is about the options, opportunities, and differences among the various schemes for living on the island. Both a residence permit and permanent residency allow foreigners to live in Cyprus, but with varying degrees of stability and future possibilities.

There are several ways to become a resident of Cyprus. Those who wish to move to the country for permanent residence and/or start a business here can obtain either a residence permit or permanent residency. Here's a comparison of the conditions and benefits of obtaining residency or permanent residency through investment.

The choice of status depends on the applicant's goals. While the two options have some similarities, there are key differences: holding a guest residence permit does not grant the right to work, whereas obtaining permanent residency allows you to start and grow a business in the EU. Applicants with an overseas income starting from €2,000 can obtain a residence permit, while permanent residency is typically for property buyers with an investment of €300,000 or more.

Regardless of the chosen status, applicants must have a residential address in the country. This means that purchasing private property on the island is a necessary step in any case.

Temporary Residence Permit (TRP)

A Temporary Residence Permit (TRP) is issued for one year and can be renewed. Foreign nationals with a TRP must renew it annually or every few years, depending on the terms of issuance. After five years of continuous residence in Cyprus, a resident becomes eligible to apply for permanent residency (PR); a few years after that, they can apply for Cypriot citizenship.

One key point: applicants for a TRP must provide either a long-term rental agreement or a purchase contract for property, with no minimum property value required.

There are over 15 categories of applicants who can apply for residence permits in Cyprus, ranging from guest permits to student and work permits, as well as permits for high-skilled foreign professionals. The right to reside in the country is confirmed by an ID card, which contains the holder's details, including biometric information.

Guest, Student, Work, and Remote Worker Residence Permits

The residence permit for so-called "digital nomads" is issued annually to up to 500 foreign nationals from non-EU countries who work remotely for contracts or as self-employed individuals outside of Cyprus. To qualify, their monthly income must be at least €3,500 after taxes and other deductions. This category of applicants must provide a work contract with a company outside of Cyprus. The main applicant's spouse and children under 18 can also obtain residence permits, but they are not allowed to work or start a business in Cyprus. This permit is issued for one year and can be extended for up to two years. It typically takes 5-7 weeks to process this type of visa.

Employees of companies with foreign participation can obtain residence permits if they are hired for key positions. In this case, the employer applies for the permit on their behalf, and the applicant must earn at least €2,500 before taxes. The residence permit allows the main applicant to include family members in the application—spouse, children under 25, and the parents of both the applicant and their spouse if they act as sponsors. This residence permit is issued for one year with a maximum stay of four years. However, for high-skilled professionals working in key economic sectors, there is no limit on the duration of stay.

Student residence permits are issued to foreign students who have been accepted into a Cypriot university and have paid their tuition fees, as well as students in language courses (in Greek or English). Student permits allow work only if the student is enrolled in a state-accredited university in a full-time program and their employment does not exceed 20 hours per week. The processing time for this permit is 2-3 months, and it's valid for one year, allowing free entry and exit from Cyprus, as well as travel within the Schengen Area. The ID card must be renewed annually until the end of the study program.

Guest residence permit

A guest residence permit is issued for one year, and foreigners can renew it an unlimited number of times. When applying for an extension, applicants need to submit the same set of documents (with the exception of a criminal record check). When renewing the permit, the minimum account balance must be at least €6,000, regardless of family composition.

Applicants must maintain continuous residence in Cyprus to keep their residence status and must not leave the country for more than three months in a row.

The processing time for obtaining a guest residence permit for foreigners with overseas income can take at least three months. The applicant must go through several steps:

1. Obtain a visa for entry into Cyprus.

2. Rent or purchase property.

3. Gather, translate, and authenticate documents for the residence permit.

4. Complete a medical examination in Cyprus, including blood tests for infections and a chest X-ray.

5. Pay registration fees for obtaining the residence permit and for registering in the Cyprus immigration system.

6. Submit the application for the residence permit and provide biometric data (photo and fingerprints).

7. Receive an Alien Registration Certificate (ARC), an Alien Registration Number.

8. Obtain the residence permit.

The document collection process for any residence permit category involves two stages: preparing the required paperwork in the country of residence, and then traveling to Cyprus to complete the medical examination and provide the rental agreement or proof of property ownership.

Required documents

The main list of documents required to obtain a residence permit in Cyprus includes the following:

- The MVIS6 application form.

- A passport valid for at least three months from the application date.

- A certificate of no criminal record from the country of origin/residence.

- Blood test results for HIV, syphilis, hepatitis B and C, along with a chest X-ray report with a doctor's assessment from a medical facility in Cyprus.

- Health insurance.

- A bank letter of guarantee to cover repatriation costs.

- Proof of residence in Cyprus (rental agreement or property purchase agreement).

- A bank statement proving the applicant's financial stability.

- Marriage and birth certificates for the applicant's spouse and children.

For the most current information on how to obtain a residence permit, visit the website of the Department of Civil Registry and Migration at the Ministry of Interior of the Republic of Cyprus.

Autonomous Visitor Permit

Foreigners with stable income from outside Cyprus can apply for an Autonomous Visitor Permit (a type of guest residence permit). The conditions require that the applicant can support themselves and their family with income from abroad and does not intend to work in Cyprus. Applications for this permit are accepted from non-EU citizens who are at least 18 years old, along with their spouses and children (under 18).

Applicants must demonstrate a monthly income of at least €2,000. If including family members in the application, the income requirement increases by 20% for a spouse and 15% for each child. This income can come from various sources, such as salary, pension, income from bank deposits, rental income from foreign or Cypriot property, and dividends from foreign or Cypriot companies, provided the applicant does not receive a salary from them.

Permanent Residence Permit (PR)

Permanent Residence Permit (PRP) through investment is issued indefinitely. It does not require annual renewal, only an ID card update every five years. PRP allows the applicant to move to Cyprus with their family and establish a business. Eligible family members include the spouse, children (up to 25 years), and the parents of both spouses if they depend financially on the applicant.

Property owned by the investor can be rented out, but it cannot be sold while the investor intends to maintain residency in Cyprus. After living in the country for five years, the investor can sell the property without losing their status, which is also a step toward obtaining citizenship by naturalization.

Applications for PRP are accepted from individuals over 18 years of age with legal income, no criminal record, and no entry bans in EU countries. The applicant must not be on any sanction lists. You can obtain PRP for the entire family within 3-6 months by participating in a government investment program, which requires a minimum investment of €300,000.

Under this program, the future investor has several investment options:

- Purchase of property (residential or commercial)

- Supporting a local business by buying shares in Cypriot companies

- Buying shares in local funds (investment or development).

Costs of Obtaining a Permanent Residence Permit (PR)

When purchasing real estate, the investor's expenses include the cost of the property and several mandatory fees and taxes. For new properties, buyers must pay a Value-Added Tax (VAT) of 19%, which is usually included in the price of the apartment or house. A reduced VAT rate of 5% is applied only to new residential properties when the total cost does not exceed €350,000, and the reduced rate is only applied to the first 130 m².

Investment funds can come from the applicant's personal bank account or from a company account where the applicant or their spouse is the sole shareholder. The investor's minimum annual income must be at least €50,000. For a spouse, the required income increases by €15,000, and for each financially dependent child, by €10,000.

Annual income is verified through tax returns from the country where the applicant is a tax resident.

What is required for an investor to obtain PRP:

1. Pass a background check to ensure good standing.

2. Collect, translate, and apostille the necessary documents.

3. Fulfill the investment requirement (purchase real estate).

4. Submit the application for PR and obtain the permit.

Attorneys, acting under a power of attorney on behalf of the applicant, assist with the property transaction, apply for VAT benefits, and submit the PRP application to the Department of Civil Registry and Migration in the Republic of Cyprus.

In summary, the key points are:

Residence Permit (Temporary Residency):

- A residence permit allows foreigners to live in Cyprus for a specified period. It is typically issued for a year and can be renewed.

- There are different types of residence permits, including temporary and long-term.

- To obtain a residence permit, you may need to provide proof of employment, study, or investment. You might also need to demonstrate that you have sufficient financial resources to live in Cyprus.

- A residence permit does not automatically grant permanent residency or citizenship.

Permanent Residency (PR):

- Permanent residency allows you to live in Cyprus permanently without the need to renew your permit.

- Usually, obtaining PR requires a more substantial investment, such as purchasing property of a certain value or having a stable income.

- There are several categories of PR, including investor PR (Category F) and PR by investment (Permanent Residency by Investment).

- Permanent residents may eventually apply for citizenship, but it's not an automatic process.

Key Differences:

- A residence permit grants temporary residency, while PR provides a permanent right to live in Cyprus.

- PR can be a step toward obtaining citizenship, but a residence permit is not.

- The conditions for obtaining PR are generally stricter than those for a residence permit.

Requirements:

- Residence Permit: proof of a legal basis for residing (work, study, business, investment), financial stability, and sometimes health insurance.

- Permanent Residency: significant investments, a clean criminal record, health insurance, and sometimes language or cultural requirements.

Crona Group, as a property developer and builder in Cyprus, would be glad to offer you a consultation on obtaining permanent residency through real estate investment when purchasing property from our company.