As a business owner, Cyprus residency is the best way to take advantage of a robust international market and additional savings through the country’s favorable tax policies.
The Aspen Trust Group has helped many business owners with selecting and applying for the best Cyprus residency program according to their needs. Learn about the different options available and what to expect during the process to get started.
Types of Cyprus Residency Available
There are two major Cyprus residence permits that business owners interested in Cyprus residency can apply for, Cyprus permanent residency or temporary residency. Any individual wishing to remain in Cyprus for more than three months will need to have a residence permit or visa. In general, Cyprus permanent residency benefits business owners in both the short and long term and can also save you time and money when relocating to the country.
As of 2022, nearly 60,000 small and medium sized enterprises were operating in Cyprus, the majority of these being micro-sized enterprises, and reaping the benefits of the jurisdiction’s diverse portfolio of growing industries.
It is important to note that temporary or permanent residency is different than tax residency. Tax residency applies to non-domicile nationals who spend at least 183 days per tax year in Cyprus. Individuals can also gain tax residency by staying in the jurisdiction for at least 60 days, provided that they are not tax residents of other jurisdictions, have a permanent home (rented or owned) in Cyprus, and can show proof of doing business in the jurisdiction.
Before you begin the process of relocating and company formation, it should be determined whether, depending on your country of origin, you will require a visa prior to your arrival in Cyprus as well as a clear picture of the immigration process to obtain your residence permit. Below, we outline the various types of registration certificates and residency programs to help you understand your options.
Registration Certificates for EU and Non-EU nationals: Yellow Slips and Pink Slips
When applying for entry visas for Cyprus, an arriving foreign national will need to select the correct entry visa. After arriving in Cyprus, a foreign national will then need to apply for a registration certificate. There are two registration categories separated by national status.
A yellow slip is granted to European citizens and their families (including Non-EU family members) and for EU family members, it allows the holder to stay in Cyprus without renewal, whereas for Non-EU family members it has a validity of 5 years, on expiry the applicant can apply for renewal. As EU nationals, yellow slips come with the right to work. Yellow slips are usually issued faster than pink slips, which usually take 3 to 6 months to receive after application submission.
On the other hand, pink slips are for third-country nationals, valid for a year, and must be renewed annually. This is for foreign nationals planning on staying beyond three months. The Pink Slip requirements include needing to have a bank letter of guarantee for each family member with amounts dependent on nationality and having a valid passport as well as a rental agreement or title deed. Those with a pink slip are also not eligible to work and must provide evidence of sufficient income from abroad.
A Glance at the Immigration Process for Temporary Residency
For EU nationals:
- Visa-free entry arrival into Cyprus
- Opening a bank account in Cyprus and proving sufficient financial resources
- Collecting and submitting necessary documents and application for registration certificate (yellow slip)
- Receive Temporary Residence permit
For Non-EU Nationals
- Arrival into Cyprus with visa, if required
- Opening a bank account in Cyprus and proving sufficient financial resources
- Collecting and submitting necessary documents and application for registration certificate (pink slip)
- Receive Temporary Residence permit
The Aspen Trust Group professionals can help you take the necessary steps in registration certificates and permit applications depending on the Cyprus residency program you will be applying for.
Cyprus Temporary Residency Permit Under ‘Pink Slip’
A Cyprus temporary residency permit is issued for employment, studies, or family reunification, also as a pink slip. For business owners from other EU countries, one option is to go through the process of company formation in Cyprus and be paid via dividends as the owner.
A temporary residency permit is issued for 1 year and costs €1,000, it can be renewed at the end of each year for €600. You can qualify for a Cyprus permanent residence permit after five continuous years under the temporary residence program.
While a visa is not needed for EU nationals staying under 90 days, EU nationals planning on residing in Cyprus must immediately file for a residence permit within the first few days of arriving. If you are a temporary residency permit holder from an EU member country, you can apply for a work permit. In addition, you will not be able to leave Cyprus longer than 3 months within this period without forfeiting the residence permit.
For non-EU foreign nationals, the best approach to be able to live and work in Cyprus is to apply for residency through the permanent residency program. Otherwise, setting up a company that pays out through dividends, which is tax-free for non-domicile individuals and does not require a work permit, is another solution.
Requirements for a temporary residence permit:
- Application form
- Passport copy
- Accommodation proof in Cyprus
- Proof of sustainable financial means from abroad while in Cyprus
- Health check
- Proof of health insurance
- Background check, issued within the past 6 months from the resident country
- Bank guarantee
- Work permit for employment
Cyprus Permanent Residency by Investment Fast Track
One of the best solutions for obtaining a Cyprus residency quickly is to apply for Cyprus permanent residency rather than a temporary one. Under government policy, temporary residency card holders can qualify for permanent residency after five consecutive years and proof of employment. Yet for business owners looking to get started quickly, Cyprus residency by investment is much faster.
A Cyprus permanent residency by investment program offers foreign nationals a Cyprus residency permit in exchange for a qualifying investment. The most common qualifying investment is purchasing property in Cyprus worth at least €300,000. To qualify for the fast-track process, the applicant must deposit at least €200,000 and register the sale agreement at the Land Registry.
Cyprus Permanent Residency by Investment Slow Track
If time is not an issue, a foreign national can still use real estate as an investment option for permanent residency. Under the normal track, third-country applicants can purchase real estate in Cyprus at any value and open a local bank account to receive their permanent residency in about 18 months. During this time, they will need to demonstrate an income from abroad that is at least €30,000.
Another option is starting a business to obtain a permanent residence permit. To do this, you will need to invest at least €300,000 in a Cypriot company and create at least five jobs. Again, you will need to prove that you have the financial means outside of Cyprus to support yourself and your family.
The final option if you are not looking to make such a large investment is to apply for a Cyprus residency through the Cyprus Self-Employed Persons Scheme. This scheme is designed for self-employed individuals who can prove they have a viable business. The minimum investment required is €30,000.
Requirements for obtaining a Cypriot residency permit include depositing a fixed sum of €30,000 in a Cypriot bank account for the first three years of residency. Annual income must also be proven at €30,000 or more. For a spouse and/or each dependent child included in the application, an additional €5,000 must be shown (€8,000 for each parent).
Cyprus Permanent Residency in Category F (Slow Track)
There is a slower, more affordable option for those looking to gain permanent residency in Cyprus. Referred to as the Category F option, this path is best suited for those on a tighter budget, such as early retirees or pensioners.
Compared to the more expensive investment route, those applying for Cyprus residency through Category F can expect to wait between one and two years for their permanent residency to be granted. In the meantime, they will need to apply for a temporary residence permit, which will allow them to stay in Cyprus for up to a year and can be renewed annually.
Which Residency Comes with the Right to Work?
A temporary or permanent residence permit does not automatically grant the holder with the right to work. One way around this is through company formation. After company formation, a foreign national can get paid through dividends by being the owner of the company.
Does Permanent Residency by Investment Require Applying for Temporary Residency First?
The process of permanent residency using investment does not require a temporary residency permit first because the application and all necessary investments will need to be formalized first. Often non-EU foreign nationals begin the process outside of Cyprus and then travel to Cyprus as the process finishes up, applying for any applicable visas prior to travel.
On the other hand, using the 5-year temporary residency plan to get a permanent residence or the Category F plan will require temporary residency within Cyprus before qualifying for permanent residency. For the majority of non-EU business owners, real estate investment or company formation provide the fastest routes for permanent residency.
Cyprus Permanent Residency Benefits for Business Owners
Obtaining permanent residency in Cyprus is relatively easy. The most common way to do so is to purchase property in the country. There are no restrictions on foreign ownership of property in Cyprus, and the process is relatively straightforward.
Once you have obtained permanent residency, you will enjoy all the benefits that Cyprus has to offer. You will be able to live and work in the country without restriction, and you will be entitled to quality healthcare and education. Additionally, you will be able to travel freely within the European Union (you still might need to apply for a Schengen visa which is easy as a Cyprus permanent resident).
If you are looking for a way to secure your financial future, then a permanent Cyprus residency is certainly worth considering, especially now in 2023 where the Portugal permanent residency scheme got canceled and the Greece golden visa investment requirement doubled. The Aspen Trust Group can help you apply for the right Cyprus residency program. Contact our experts to find the right solution for you.
Deciding Which Cyprus Residency is Right as a Business Owner
As a business owner, Cyprus residency is the best way to take advantage of a robust international market and additional savings through the country’s favorable tax policies.
The Aspen Trust Group has helped many business owners with selecting and applying for the best Cyprus residency program according to their needs. Learn about the different options available and what to expect during the process to get started.
