Last Updated on 7th March 2025
Recent changes to the Cypriot investment program removed the ability to apply for direct citizenship by investment. However, since then, a proportion of prospective citizens aspiring to live or retire on this beautiful Mediterranean island have turned their attention to the residency by investment program.
Alongside options to acquire Cypriot citizenship through naturalisation or by marriage to a spouse of Cypriot origin, the scheme enables applicants to secure permanent residency status as a stepping stone towards full citizenship and a Cypriot passport.
Here we examine the varied routes to residency, why this may be the easiest way to obtain Cypriot citizenship and some of the investment options available to non-European Union nationals who are keen to call the Republic of Cyprus their home.
The Appeal of a Cyprus Passport: Why Demand Remains High for Cypriot Residency by Investment
Cyprus has long been an appealing location for expatriates, particularly retirees looking for a peaceful lifestyle in an idyllic island setting with low crime rates, affordable living costs and high-quality healthcare facilities.
The lack of inheritance tax and affordability of generously sized homes close to beaches and coastal regions has also prompted renewed applications from professionals and families hoping to settle somewhere within a short flight of the United Kingdom.
For those planning a relocation to Cyprus, the draw of becoming a Cypriot citizen in favour of permanent residency is often centred around the following:
- Free movement with the full rights and entitlements afforded to EU citizens.
- Lifelong visa-free travel and the right to live, work or study in any European location.
- Access to a beneficial tax system, with many tax levies lower than those elsewhere in Europe.
- Full rights to public education, healthcare and banking services.
The ‘golden visa’ is also considered beneficial due to its high acceptance rating, provided the criteria are met. There are minimal physical stay requirements, the ability to include a spouse and children under the age of 25, and the option to complete the application procedure remotely, aside from a visit to provide biometric data.
While residency by investment isn’t necessarily a guarantee of onward citizenship, it acts as an interim measure. After eight years in Cyprus, residents may become eligible for a second passport – while noting that additional criteria will apply.
A Look at the Cyprus Permanent Residence Program as a Pathway to Citizenship
As we’ve intimated, the Permanent Residence Program is fairly straightforward. The scheme is designed to augment foreign investment in the Cypriot economy and ensure permits are granted to applicants from outside the EU who make a valid investment.
While additional checks may be required, the standard criteria and options are as follows:
- Invest in newly constructed or developed real estate worth €300,000 or more, plus VAT. This can be immovable residences or commercial properties, and acquisitions from two different developers are accepted.
- Invest the same €300,000 or more in company share capital, provided the business is registered and trades within Cyprus, and employs at least five staff members.
- Invest an equal €300,000 in the Cyprus Investment Funds Association, which incorporates several funds to select from.
Unlike many comparable residency by investment schemes, the threshold contribution is static, although with the potential addition of VAT depending on the properties or real estate units you opt to purchase.
Additional Qualification Criteria for Cypriot Permanent Residency
Alongside making the minimum financial investment, applicants who wish to obtain permanent residence must be able to prove they have a stable ongoing annual income arising from outside of Cyprus of at least €50,000, plus an additional €15,000 for a dependent spouse and €10,000 for each dependent child.
Overseas incomes are accepted from most sources, provided they originate outside of Cyprus. These might include rental income from real estate ownership, employment salaries, pension benefits, interest earnings, and dividend revenues.
Those hoping to become Cypriot permanent residents must have a clean criminal record check from their country of origin and any other countries they have lived in, and offer a statement that confirms they are not reliant on employment income in Cyprus—excluding company directorships linked to investments.
Proof of health insurance is also required for all applicants and dependents, as there is an assumption that they will not be expecting to be dependent on the Cypriot General Healthcare System.
Utilising Cypriot Permanent Residence by Investment to Become a Citizen
When an applicant has successfully been granted permanent residency, there is no obligation to renew the permit. However, they will need to travel to Cyprus once every two years if they aren’t living on the island. This ensures permit holders maintain their right to residency and can renew their ID card periodically.
The norm is for permanent residents to become eligible to apply for Cypriot nationality after eight years. However, applicants must have lived on the island for 12 months before they can apply, regardless of how long they have held residency status.
As we’ve indicated, dual citizenship and a second passport aren’t guaranteed following a successful residency by investment application. That said, if you comply with the terms, such as publishing statements affirming your intention to become a citizen, passing a Greek language test, and being prepared to share your record of arrivals and departures, the majority of applications are approved.
Obtaining Cypriot Second Citizenship Through Alternative Routes
An alternative, often relevant to expatriates currently residing in Cyprus or who have relocated through a different visa program, is to consider naturalisation-based citizenship.
The Cypriot government will consider naturalisation applicants if they have been legal residents for eight of the last 11 years and haven’t left the country for more than three months at a time. The same 12-month minimum stay before the application date applies.
Further options exist for highly qualified professionals who are resident in Cyprus and employed by a foreign interest company. These applicants can gain eligibility to become Cypriot citizens by naturalisation with faster turnaround times, often following four to five years of residency. Quicker processing is also available for those with a higher proficiency level in the Greek language.
If you’d like to learn more about obtaining Cyprus citizenship through the residency by investment program, assess your eligibility for citizenship by naturalisation, or require independent, professional guidance to help shape your onward plans, you are welcome to get in touch.
The Chase Buchanan Cypriot team is based in Paphos and can offer more tailored, relevant guidance based on your current circumstances and citizenship or residency aspirations.
*Information correct as at March 2025