Cyprus’s immigration legislation

Of all the countries in the European Union, Cyprus, in our view, has the most favourable legislation regarding third-country nationals.

The right to work in Cyprus

All EU citizens have the right to work in Cyprus; however, they must register with the immigration authorities within three months of entering Cyprus and obtain a registration certificate. For this category of citizens, a so-called ‘yellow slip’ is issued.

Third-country nationals (non-EU citizens) who plan to work in Cyprus must apply in advance to the Cyprus Immigration Service to obtain a work and residence permit.

Work permits for third-country nationals can only be obtained for companies that are authorised to employ staff who are nationals of non-EU countries.

To obtain this authorisation, a company must submit an application to the Cyprus Immigration Service. All companies whose shareholders are not EU citizens are entitled to employ third-country nationals, provided that certain requirements are met.

Permanent residence in Cyprus

Third-country nationals planning to reside in Cyprus for an extended period enter Cyprus on a short-stay visa.

A visa for Cyprus is issued at the embassy in Moscow within one working day and allows the holder to stay on the island for 90 days. Applications for a permanent residence permit (pink slip) must be submitted at least one month before the end of the applicant’s stay on the island.

Under Cypriot law, whilst holding a ‘pink slip’, the applicant is not entitled to work in Cyprus and must not be absent from the island for more than three months in any year.

This residence permit may be issued for a period of between six months and three years. The processing time for an application is approximately three months.

A residence permit may be issued to individuals planning to invest in the island’s economy. This type of residence permit is assessed by the immigration service, but the final decision is made by the Ministry of Foreign Affairs. The processing time for the application is approximately two months.

The applicant must meet the following criteria:

• They must not be engaged in any form of business in Cyprus and must not plan to work on the island. These undertakings must be set out in writing and attached to the application.
• They must intend to visit Cyprus at least once every two years.
• Must demonstrate an annual income of at least €30,000 from sources outside Cyprus (salary, dividends, deposits, rental income, etc.). The required minimum is increased by €5,000 for each dependent in the family.
• Must deposit €30,000 into a bank account in Cyprus. The funds must be transferred from a foreign bank to an account with a local bank and frozen for a minimum period of three years. A bank statement certified by the bank must be submitted with the application.
• You must hold a title deed or a contract to purchase property, such as a house, flat or other property, with a minimum value of €300,000 plus VAT. Documents confirming payment of at least €200,000 excluding VAT must be submitted with the application.
• The application must be accompanied by documents confirming that the funds were transferred from abroad.

Cyprus Economic Citizenship

Third-country nationals who are major investors may apply for citizenship if they meet the following criteria:

• No criminal record.
• Ownership of property in Cyprus worth more than €500,000 plus VAT.
• Making investments in the Cypriot economy and providing evidence of these investments. Investments may be made in one of the following ways:
  • A combination of investments and donations. €2 million must be invested in the purchase of shares or bonds issued by the National Investment Company. Until this company is established, the funds must be deposited with the Cypriot Treasury. €500,000 must be transferred to the Research and Technology Fund;
  • Direct investments. The applicant must make direct investments in the Cypriot economy: the purchase of property (houses, office premises, shops, hotels or properties under construction); the purchase of a business or company operating in Cyprus; the purchase of financial assets, etc.
  • Bank deposits. The applicant must place a sum of €5 million on deposit with Cypriot banks for a period of three years. Deposits may be made by the applicant personally, by a company owned by them, or by a trust of which they are the beneficiary.
  • A combination of investments and donations to the National Fund, direct investments and bank deposits. Under this option, the total investment must amount to €5 million.
  • Business activity. The applicant must be the owner of a company operating in Cyprus. This company must have paid taxes totalling €500,000 per year over the last three years. The tax amount includes corporation tax, VAT, other corporate taxes, as well as professional service fees (legal services, accounting and auditing). However, if the company employs five Cypriot nationals, the required payments may amount to €350,000, and if it employs ten Cypriot nationals, the amount may be €200,000.