What kind of properties could qualify for the Cyprus residency-by-investment program?

Answers

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  Yiannis Papazacharia

  Yiannis Papazacharia LLC

  July 26, 2018

  The provision of the regulation for permanent residency in Cyprus under the fast-track procedure, regulation 6(2), is that the purchase price of the property or properties should be 300,000 euros or more, not including VAT. It applies to purchases of residential units that are sold by a developing company for the first time. The authorities will not accept applications based on the purchase of residential units through resale procedures from an individual. Alternatively, you can submit a permanent residency application under Regulation 5, Category F (normal procedure), which takes approximately one year to obtain the approval. Property investment amount for Category F: The value of property purchased in Cyprus is not specified and can be a resale property. Under this category, the most important requirement is for applicants to have sufficient funds in their Cyprus bank account deriving from abroad from a legitimate source to support themselves and their dependents, proving the intention of the applicant to move permanently to Cyprus.

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  Yiannos Vasiliou

  Vasiliou Law

  July 26, 2018

  According to the decision of the minister of interior dated on the Feb. 22, 2016, in order for a foreign national to qualify under the criteria of Article 6(2) of the Aliens and Immigration Regulations (immigration permit to third-country applicants), the applicant should purchase a property sold for the first time by a development company. Therefore, the property that your friend from Nicosia is willing to sell you does not fall under the criteria of Article 6(2). The fact that the property hasn't been occupied is irrelevant for said purposes. Please note that when purchasing a property that is sold for the first time in Cyprus, VAT is applicable. The applicable rate is 19 percent on the purchase price. However, if you are purchasing a property for the first time in Cyprus, then the rate is 5 percent.

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  Michalis Anastasiou

  Evagoras Anastasiou & Associates LLC

  July 26, 2018

  In order to cover this criteria the immigration department suggests buying “new” straight from a developer. In you case before you, proceed with the purchase of the your friend’s property. A thorough examination needs to be done on the property from your lawyer through the land registry and immigration authorities as to whether it can be considered “new” or a “resale." My opionion is that it cannot be considered “new,” as your friend probably bought it from a developer or real estate agency in 2015.

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  Lazaros Omirou

  Omirou & Omirou LLC

  August 19, 2018

  Brand new properties or off-plan properties, residential or commercial ones apply for the residency program. The "new" properties have the definition that no VAT has been paid yet for the purchase of such property. In your case, the VAT has already been paid and you may purchase this property, but you will be eligible for applying for the permanent residency status, not with the fast-track policy of 6.2 regulation(three months), but with the slow-track regulation of the category "F," which will take you more than a year to obtain your permanent resident status. In any case, I have to inform you that the legal results of having the residency are exactly the same in both cases.

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  Chriso Savva

  CHRISO SAVVA LLC

  September 18, 2018

  The application process under regulation 6(2) requires a new property. New property is defined as a property which was not previously owned by any other party and for which no sales agreement has been lodged with the land registry. Nevertheless, you may apply for permanent residency via investment through category F, pursuant to which you do not need to have a new property and the costs of the property may be lower than 300,000 euros. Please bear in mind, however, that under category F, the permanent residency application processing time is much longer than under Regulation 6(2).

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  Andros Pelecanos

  Pelecanos & Pelecanou LLC

  October 24, 2018

  According to the provisions of Regulation 6(2) of the Aliens and Immigration Regulations, the applicant should submit, together with the application and the other associated documents, title deeds or a sale contract in his/her name and/or his/her spouse, which has been officially filed at the Department of Lands and Surveys, of a real estate, of total market value of at least 300,000 euros (V.A.T. is not included therein) and official payment receipts of at least 200,000 (excluding V.A.T.), irrespective of the delivery date of the real estate. It should be stressed that the full payment of the real estate value shall be settled in an account in a financial institution in Cyprus and the abovementioned amounts must be proven to have been transferred to Cyprus from abroad. The said purchase must be in relation to a property/properties sold for the first time by a development company. As from May 7, 2013, applications in relation to the re-sale of dwellings will not be accepted. It should be stressed that sale contracts in relation to a re-sale of dwellings that have been officially filed at the Lands and Surveys Department prior to May 7, 2013, (the date of filing the sale contracts is to be confirmed by the Department of Lands and Surveys), shall be accepted for the purpose of implementing the said policy. Should a property be a resale, it is still possible for the applicant to proceed with a Category F permit. Under the Category F permit, there is no minimum purchase price although the size of the property should be proportionate to the applicant’s family. One of the main differences between the two, i.e. regulation 6(2) and Category F, is the time required for the said application to be examined. It is estimated that the time required for the examination of the application under Regulation 6(2) is approximately two months from the date of submission. Under Category F, the time required for the examination may take between 12 to 16 months.