Working Permit

The Council of Ministers, with its Decision dated 15.10.2021, approved the New Strategy for attracting companies to operate and/ or expand their activities in Cyprus. The new Strategy is in force since 2.1.2022. The Strategy abolishes and replaces the previous policy on the employment of personnel from third countries employed by companies of foreign interests. According to the provisions of the New Strategy:

(a) Maximum quotas for foreign staff are cancelled. Companies can freely employ any number of highly paid third-country nationals without going through a labour market check.

  • The existing categories of Directors, Key Personnel and Specialists are maintained for reasons of administrative structure/ statistics.
  • Specialists are not limited to specific professions or skills.
  • However, all companies commit to invest 30% of their total staff in Cypriots/EU citizens over a period of five years. In five years, that is after 2.1.2027, the ratio for new hires will be checked. If a company does not adhere to the 70:30 ratio, the case will be evaluated on its own merits and put before the management for an administrative decision.

Eligible businesses must meet one of the following criteria:

  • 1. Majority share: the majority of the company’s shares are owned by third-country nationals.
  • 2. Minority share: in case that, the percentage, of the company’s shares, owned by a third-country national is equal or less than 50%, the company is eligible if that foreign participation has a value of at least €200.000; that is on top of the initial investment of €200.000 as clarified below.
  • In both cases above (1&2), the ultimate beneficial owner (UBO) must deposit an amount of €200,000 in an account held by the company in a credit institution licensed by the Central Bank (payment institutions are not included). Alternatively, the company can submit evidence of an investment amounting to €200,000, for the purposes of operating its business in Cyprus (e.g. office purchase, office equipment purchase, etc.).
  • If more UBOs exist, then this amount can be deposited or invested by a single UBO or collectively.
  • For cases 3-9, the investment criterion is also applicable and the company’s initial investment in the Republic of at least €200,000, must be proven by presenting the appropriate certificates (e.g. bank statement at the time of deposit of the amount or proof of investment (purchase of office space and/or office equipment)).
  • 3. Public companies registered on any recognised stock exchange.
  • 4. Companies of international activities (formerly off-shore), which operated before the change of regime, whose data are held by the Central Bank.
  • 5. Cypriot shipping companies.
  • 6. Cypriot high-tech/innovation companies*.
  • 7. Cypriot pharmaceutical companies or Cypriot companies active in the fields of biogenetics and biotechnology.
  • 8. Companies of whom the majority of the total share capital is owned by persons who have acquired Cypriot citizenship by naturalization based on economic criteria, provided that they prove that the conditions under which they were naturalized continue to be met.
    • 9. Cypriot Private Institutes of Tertiary (Higher) Education licensed by the Ministry of Education, Sport and Youth.
  • * An enterprise qualifies as ‘High Technology Company’ if:
  • (a) it is already established and has a presence in the market, and
  • (b) it has a high level or experimental R&D intensity, and
  • (c) it developed product/s that fall into one of the following categories: products related to aviation and space industry, computers, information and telecommunication technology (ICT), pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.

Immigration Permits for Investors

  • INVESTMENT CRITERIA
    The applicant must invest at least €300,000 in one of the following investment categories:

    (A) Investment in a house/apartment:

    Purchase of a house or apartment from a development company, which must be a first sale worth at least €300,000 (plus VAT).

    (B) Investment in real estate (excluding houses/apartments):

    Purchase of other types of real estate such as offices, shops, hotels or related estate developments, or a combination thereof, with a total value of €300,000. These purchases may result from a resale.

    (C) Investment in Cyprus Company’s share capital, with business activities and personnel in the Republic:

    An Initial investment worth €300,000 in the share capital of a newly registered company in the Republic of Cyprus or an increase in the share capital worth €300,000 of an existing company registered in the Republic of Cyprus, based and operating in the Republic of Cyprus and having a proven physical presence in Cyprus, and employing at least five (5) people.

    (D) Investment in units of Cyprus Investment Organization of Collective Investments (forms of AIF, AIFLNP, RAIF):

    Investment worth €300,000 in units of Cyprus Investment Organization Collective Investments, whose investments should be held in the Republic of Cyprus.

    It is noted that any alienation of the holder of the Immigration Permit from the investment he/she has made without its immediate replacement with another of the same or greater value which must meet the conditions set out in the present procedure, will result in the cancellation of the Immigration Permit based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.

    2.2 The applicant should, in addition to the investment under Paragraph 2.1 above, be able to prove that he has at his disposal a personal secure annual income of at least €50,000. This annual income increases by €15,000 for his/her spouse and by €10,000 for each of his/her or his/her spouse’s dependent minor child. This income should derive from abroad and may include salaries or wages, pensions, dividends from shares, bank deposits interest, rents, etc., which can only be proved through a tax return declaration from the country he declares tax resident, in cases where the applicant chooses to invest as Section 2.1 (A). In calculating the total amount of income, the spouse’s income may also be taken into account.

Category F:

  • Persons who possess and have fully and freely at their disposal from abroad a secured annual income of an appropriate amount to allow them a decent living in Cyprus, without having to engage in any business, trade or profession in the Republic. The annual income required should be at least €9,568 (CY£5,600) for the applicant and moreover at least €4,613 (CY£2,700) for every dependent person. This income may include pensions, dividends from shares, fixed deposits interest, rents a.s.o.

RESIDENCY PERMITS

  • Residency Permit for non-EU family members of non-EU citizens

    Non-EU family members of a third country national who has prospects of applying for a permanent residency permit in Cyprus, can obtain a Resident Permit. Non-EU family members such as a spouse and unmarried children under 18 years old can obtain a Resident Permit upon providing documentary evidence of the family relationship (e.g. birth certificates) with a third-country national who holds a residence permit valid for at least one year and who has resided legally within Cyprus for a period of at least 2 years. Upon application for Family Reunification non-EU family members may obtain a Residence Permit.

    New Regulations for Applying Passport

    On the 30th of November 2023, the House of Representatives approved and passed the amended criteria for the Naturalization of highly skilled employees under the Civil Registry Law. Highly Skilled Professionals employed by Companies designated by the Council of Ministers in the context of attracting expansion of their operations in the Republic, are allowed to submit an application to acquire the Cypriot citizenship when:
  • They have a legal and continuously residency in the Republic for a period of twelve (12) months prior to the application submission. The twelve (12) months prior to the submission of the application must be continuous, with an allowance of absence from the Republic up to (90) days.
  • Must legally resided in the Republic during the ten (10) years preceding the twelve (12) months referred to the above for a cumulative period of four (4) years. The four (4) years rule is applicable for applicant who have a Greek language proficiency equivalent to level A2.
  • The four (4) years period can be reduced to three (3) years for the applicants that have a Greek language proficiency equivalent to level B1.
  • To be of a Good Character. • To genuinely reside in the Republic and have the intention to continue residing in Cyprus.
  • Sufficient knowledge of the Country’s modern political and social landscape.
  • Submission of evidence for adequate and stable income to support themselves and the dependents.
  • Clean Criminal record, no pending legal proceedings and not subject to any sanctions imposed by the European Union and the United Nations Security council. • Spouses and Civil Partners can subsequently apply with the main applicant under the same conditions.
  • Minor children who will reach the age of 18 during the application examination of their parents, will be able to apply as minors and obtain the Citizenship as well.

Applications submitted by Highly Skilled Professionals are fast tracked and reviewed within a period of maximum 8 months. Any applications submitted prior to the new legislation, will be assessed based on the new criteria, therefore applicants will be required prove proficiency in Greek language and satisfy the applicable minimum stay requirements to qualify.

For more information, please contact us: msimou@nikitas.com.cy