Programme overview

Cyprus’s Permanent Residence Permit by Investment, issued under Regulation 6(2) of the Aliens and Immigration Regulations (the “Category 6.2” or “fast-track 6.2” route), grants EU permanent residency in two to six months on a €300,000 invested-capital floor across four asset classes: new residential property, other real estate, a Cyprus operating company, or units of CIFA-regulated investment funds. The current scheme dates to 2016 and was substantively amended in May 2023 (introducing the company and fund routes) and again in 2024 (narrowing the eligible-dependent definition).

Two structural points distinguish Cyprus from the surrounding Mediterranean residency programmes. First, Cyprus is an EU member but NOT a Schengen Area member. The PR card does not grant Schengen mobility on its own — Cyprus PR holders need a separate Schengen visa to enter the Schengen Area. Cyprus’s accession to Schengen has been pending for years and remains anticipated rather than confirmed; any client briefed on Cyprus must be told this explicitly. Second, the 2024 reform removed parents and parents-in-law from the eligible-dependent list. The Cyprus file now covers the principal, spouse, and minor children only; adult children 18–25 require separate sub-permits; multi-generational families need separate applications or a different jurisdiction.

Where Cyprus competes hard is on the tax side. The Cyprus non-domiciled resident regime grants a seventeen-year exemption from the Special Defence Contribution (SDC) on dividends, interest and rental income for principals who relocate and elect non-dom status. Combined with no inheritance tax, no CGT on listed securities, no CGT on most foreign-source assets, and the 60-day tax-residency rule (available where the principal is not tax-resident elsewhere and meets defined anchor conditions), Cyprus is the most aggressive low-tax EU residency for portfolio-income-heavy families.

Investment routes

Residential real estate — new build (€300,000)

Purchase of one or two new residential properties from a Cypriot development company, totalling at least €300,000 plus VAT. First-sale only — resales do not qualify under the residential route. The most-used route by volume. Property must be retained for the duration of PR; proceeds of any sale must be re-invested in qualifying assets to maintain the permit.

Other real estate — commercial, hotel, office (€300,000)

Acquisition of non-residential property worth at least €300,000. Resale stock qualifies under this category. Suits principals who specifically want commercial yield rather than a residential anchor.

Cyprus company shares (€300,000)

Investment of at least €300,000 in the share capital of a Cyprus-registered operating company with substantive Cyprus presence and at least five Cypriot or EU/EEA employees. Counsel-heavy because the operating-substance test is judged at issuance and again on renewal. Suits principals already running businesses they could anchor in Limassol or Nicosia.

Cyprus collective investment funds (€300,000)

Investment of at least €300,000 in units of CIFA-registered AIF, AIFLNP or RAIF funds with Cyprus exposure. Lighter-touch than the company route; demands close fund due diligence on liquidity, exit and underlying portfolio quality.

Income test (independent)

Across all four investment routes, the principal must demonstrate at least €50,000 in secured annual foreign-source income, increased by €15,000 for the spouse and €10,000 for each minor child. Income must be recurring, post-tax, and demonstrably from outside Cyprus. The investment does not satisfy this test; it is independent and must be evidenced in addition.

Tax architecture

The default position. Cyprus tax residency triggers at 183 days of physical presence in a calendar year (the standard rule), or under the alternative 60-day rule for principals who are not tax-resident in any other jurisdiction, who spend at least 60 days in Cyprus, who carry on business or are employed in Cyprus, and who maintain a permanent home there. Most 6.2 PR holders never become Cyprus tax-resident.

The non-domiciled resident regime. Where the principal does become Cyprus tax-resident, election as non-domiciled (typically the position for non-Cypriot incomers) provides a seventeen-year exemption from the Special Defence Contribution on dividends, interest and rental income — the principal income streams for capital-rich families. Cyprus also applies a 0–35% progressive personal income tax with significant exemptions, including 50% off Cyprus-source employment income above €55,000 for qualifying inbound principals.

Capital gains. Cyprus levies CGT only on gains from Cyprus-located immovable property (20%). No CGT on listed securities, no CGT on most foreign-source assets — material for portfolio-heavy families.

Inheritance. Cyprus inheritance tax was abolished in 2000. There is no inheritance, gift or estate duty in Cyprus.

What it gets you

  • EU permanent residency in 2–6 months. Among the fastest issuance timelines in the EU.
  • Indefinite status. Cyprus PR is permanent on issuance, subject to the once-every-two-years visit requirement and continued investment maintenance.
  • Tax architecture. Non-dom regime, 60-day rule, no CGT on foreign assets, no inheritance tax — the most portfolio-friendly EU residency.
  • EU education access. Children may enrol at Cypriot and most EU public universities at resident-fee rates.
  • English-language jurisdiction. Cyprus is widely English-speaking; legal and banking documentation is routinely available in English.
  • Banking and corporate access. Cyprus tax number and IBAN open Cypriot banking and an EU corporate framework — particularly valuable for international holding structures.
  • NOT Schengen. Cyprus PR does not grant Schengen mobility on its own. A separate Schengen visa is required for Schengen travel.
  • Citizenship is separate and slow. Naturalisation requires 7 years of legal residence (one continuous 12-month period immediately before application); Cyprus PR is a residency product, not a citizenship pathway.

Our role on a Cyprus file

A Cyprus 6.2 file is the most administratively efficient EU residency on offer — but only if the income test, family scope and Schengen position are correctly set at engagement.

  1. Pre-engagement diagnostic — explicit briefing on Schengen non-membership, the 2024 dependent-scope narrowing (no parents), and tax-residency election if the principal intends to relocate substantively.
  2. Tax number issuance, Cypriot bank account opening, and source-of-funds evidence pack assembly with our Limassol counsel.
  3. Investment selection and execution — new-build residential, commercial, fund or company shares — with documentation prepared for the migration department’s specific 6.2 templates.
  4. Income-test evidence assembly — recurring, post-tax, demonstrably foreign-sourced documentation for the principal and each adult dependent threshold.
  5. 6.2 application submission to the Civil Registry & Migration Department and biometric appointment scheduling.
  6. Permit issuance, two-year visit calendaring, and ongoing tax-residency / citizenship-eligibility tracking where substantive relocation is the longer-term plan.