Residence Permit by Investment in Cyprus

Non-dom Cyprus status (permanent residence status – more «domicile»), allows persons who do not have Cypriot «domicile» not to pay the contribution for defence. The legislation of Cyprus allows for dual citizenship, but   «domicile» can only be one.

Since 2015 Cyprus introduced the status of «non-diplomatic tax resident» (non domiciled tax resident).
A tax resident of Cyprus (whether a foreigner or a citizen of Cyprus) having this status shall not be taxed by the Special Defence Contribußon (SDC) on income obtained from:

• per cent (30%)
• dividends (17%)
• rental of real estate (3%)

Income derived from the sale of shares, bonds, and other similar financial sources (including options) is also tax-exempt.

Who is considered a Cypriot tax resident?

Tax residence in Cyprus is determined by the number of days the taxpayer spends in Cyprus. A person who has been in Cyprus for at least 60 days but not more than 183 days in another country, during a calendar year, shall be considered a tax resident.

Who has the status of «Non-Micial Tax Resident» (for persons born outside Cyprus)?

A person is a «non-productive tax resident» if after moving to Cyprus it has been a tax resident of Cyprus for less than 17 of the last 20 years. In the case of foreign nationals whose economic interests are focused on Cyprus, the issue of domicile is directly related to the number of days they actually spend on the island. You must be in the country for at least 60 days in one calendar year  (subject to the conditions set out above) before you can be granted a non-dom status.

Non dom benefits

1. No special defense contribution; Non-Dom is exempt from the Special Defense Contribution (CBO) for dividends, interest and rent.
2. Non-dom income from dividends, from foreign and local investments is exempt from CBA as of July 16, 2015. In addition, income from dividends is unconditionally exempt from income tax. Thus, the tax paid by the resident of Non-dom Cyprus on the income from dividends will be equal to zero.
3. Non-dom interest income from foreign and local sources is exempt from CBO as of July 16, 2015. Interest income is also exempt from income tax. Thus, the tax paid by the resident of Non-dom Cyprus on interest income will be zero.

4. Non-dom rental income from foreign and Cyprus real estate is exempt from CBO as of July 16, 2015. Rental income will be taxed only on income at normal rates (including a 20 per cent premium).

Step-by-step acquisition of Non-dom status:

• obtaining a residence permit in Cyprus
• obtaining tax residence
• declaration of Non-dom status upon receipt of tax residence

Procedure for Obtaining a Residence Permit in Cyprus

You can apply for a residence permit if the following conditions are met:

1. Proof of a minimum deposit of EUR 30,000 into a bank account in Cyprus, which will be mortgaged for at least three years. It must be proved that this amount was transferred to Cyprus from abroad.
2. Proof of a guaranteed annual income of at least 30,000 euros, this annual income must increase by 5,000 euros for each dependent person of his/her family (spouse and children) and 8,000 euros for each dependent parent or parents of the spouse.
3. Proof of purchase of real estate, total market value at least 300,000 euros. It should be emphasized that the full payment of the value of the property must be made to an account with a financial institution in Cyprus.

Necessary documents:

1. Copy of valid passport.
2. Summary (including academic qualifications).
3. Statements of deposits with the Cyprus Bank, with a minimum capital of u.s. 30,000 (original), applicable for the expedited procedure.
4. Declaration of stable annual income of € 30,000, from other sources, than employment in Cyprus (originals of documents and written testimonies). The required annual income increases by €5,000 or €8,000 for each dependent person.
5. Property right or contract of sale of built-up real estate in Cyprus, with a minimum market value of € 300,000 (original or certified copy). If the right of ownership has not previously been acquired, the applicant must submit a contract of sale, duly certified by the seal of the Commissariat and the Department of Land Management and proof of payment of at least 200,000.
6. Official statement by the applicant that he/she does not intend to work or do any business in Cyprus.
7. Health insurance policy.
8. Certificate of no criminal record (if the applicant resides abroad, The certificate must be issued from his country of origin and provided with an official and certified translation into Greek).
9. Marriage certificate (official and certified translation).

Note: All documents issued by a foreign authority must be translated into Greek or English and duly certified  (they must be stamped ‘Apostille’ if issued by countries that have signed The Hague Convention, otherwise they must be sealed

Ministry of Foreign Affairs of the country of extradition and diplomatic representation of the Republic of Cyprus in the country of extradition).