Cyprus, the Mediterranean gem that offers more than just breathtaking views and crystal-clear waters. And one of the best parts of it, that it has Cyprus investment visa, also called golden visa Cyprus. So anyone who is willing to invest in Cyprus can live here, enjoy the Cyprus tax rates, that are one of the lowest in Europe and get the EU passport for himself/herself and the family members.
Just imagine a life where you can enter and remain in Cyprus for an unlimited period, along with your spouse and kids. With the Cyprus investment visa, you can enjoy the benefits of healthcare under the General Healthcare System, low income tax Cyprus offers and create a prosperous future for yourself and your family.
In this article we will explain to you what are the options you have to invest in, if there any other additional criteria for this program, Cyprus tax rates and how you can get a Cyprus passport by using this opportunity.
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So, how can you obtain Cyprus residency through investment? Let’s explore the requirements.
Currently this program (golden visa cyprus) offers four investment options:
The first one is to buy a residential brand new property. You should invest at least EUR 300,000 plus VAT in a house or apartment. It is up to you if you want to purchase one apartment or several. You could buy two properties with the total value of EUR 300,000. It can be either already finished construction or not, the delivery date is not important in this case. So you have the wide rage and flexibility to choose the perfect home for your family.
The second one is purchasing the commercial property. This category includes offices, shops, hotels or related developments. You have the freedom to invest in a combination of these properties, including resale options.
The third option is to invest in the share capital of a Cyprus company. You can do it simply by just purchasing shares or establishing a company in Cyprus. However keep in mind, that it can not be a shell company. You need to establish a physical presence on the island and have at least 5 employees.
And the last but not least option is investing in the Cyprus investment units.
In addition to the investment, you must meet certain income criteria. Earlier there was no such criteria in Cyprus and it was established only in 2023. The applicant must show an annual income of at least €50,000. This amount should be increased by €15,000 for your spouse and €10,000 for each underage child.
Please note, that anyone staying in Cyprus over 183 days will be subject to paying Cyprus tax. Cyprus tax rates depend on what exactly the person is earning: salary, dividends, passive income or some other type of income.
All individuals, however will be subject to income tax Cyprus sets. The system has the progressive rates and depends on the total income received by each individual. Below you can see the Cyprus tax rates on the income received:
| Taxable income, EUR | Income tax rates |
| 0 to 19,500 | 0% |
| 19,501 to 28,000 | 20% |
| 28,001 to 36,300 | 25% |
| 36,301 to 60,000 | 30% |
| 60,000+ | 35% |
So if you are choosing the option to invest in Cyprus, you will have to pay the income tax Cyprus sets at the rates above, however your family will also get the residence permits, just the monthly income has to be higher.
Your income sources can include salaries, wages, pensions, dividends, fixed deposits, and rental income. And it has to come from abroad if you are investing in the residential real estate.
In this case you might need to establish any other company abroad and operate through it. And later either distribute the dividends or take the money directly from the company, depending on the form and country where you incorporate your business.
However, if you opt for other investment options than the residential real estate, your income can come from sources within Cyprus, as long as Cyprus tax will be levied from it.
And the best part of this program, that after residing in Cyprus for 5 years with this type of visa you will be able to apply for a citizenship of Cyprus. Normally people who want to apply for a Cypriot citizenship need to wait at least for 7 years but if you choose the Cyprus investment visa program this time will be reduced to five years.
For more information you can book a consultancy with us and we will estimate the best option for you to enjoy the life in Cyprus.
FAQ:
- What is the Golden Visa Cyprus program?
The Golden Visa Cyprus program is an initiative that allows individuals to obtain residency in Cyprus through investment. By making a qualifying investment in Cyprus, such as purchasing residential or commercial property, investing in a Cyprus company, or acquiring Cyprus investment units, individuals can become eligible for the program. In addition to residency, the Cyprus offers various benefits, including favorable tax rates, access to the General Healthcare System, and the opportunity to apply for a Cypriot citizenship after residing in Cyprus for five years.
2. What are the benefits of the Cyprus investment visa?
The Cyprus investment visa offers several benefits to individuals who participate in the program. Some of the key benefits include:
- Residency: Participants and their family members can obtain residency in Cyprus, allowing them to live and stay in the country for an unlimited period.
- Cyprus Tax Rates: Cyprus offers one of the lowest tax rates in Europe, providing an advantageous tax environment for investors. Participants can take advantage of these favorable tax rates, which can include low income tax rates and other tax incentives.
- EU Passport: By obtaining the Cyprus investment visa and fulfilling the residency requirements, participants become eligible to apply for an EU passport. This grants them the benefits and privileges of being an EU citizen, including freedom of movement within the EU.
- Access to Healthcare: Participants can enjoy the benefits of the General Healthcare System in Cyprus, ensuring access to healthcare services for themselves and their family members.
3. Can you invest in a combination of commercial properties under the program?
Yes, under the Cyprus investment visa program, it is possible to invest in a combination of commercial properties. The program allows participants to invest in various types of commercial properties, including offices, shops, hotels, or related developments. This flexibility enables investors to diversify their portfolio and choose a combination of commercial properties that align with their investment goals and preferences.
4. Can your income sources come from abroad if you choose to invest in residential real estate?
Yes, if you choose to invest in residential real estate under the Cyprus investment visa program, your income sources can come from abroad. This means that your salaries, wages, pensions, dividends, fixed deposits, and rental income can originate from abroad. However, it’s important to note that if you opt for other investment options apart from residential real estate, your income can come from sources within Cyprus as well, as long as Cyprus tax will be levied on it.
5. How are Cyprus tax rates determined for individuals?
Cyprus tax rates for individuals are determined based on a progressive tax system that takes into account the total income received by each individual. The tax rates increase as the taxable income rises. Here are the tax rates applicable for individuals in Cyprus:
Taxable income from 0 to 19,500 EUR: 0% tax rate
Taxable income from 19,501 to 28,000 EUR: 20% tax rate
Taxable income from 28,001 to 36,300 EUR: 25% tax rate
Taxable income from 36,301 to 60,000 EUR: 30% tax rate
Taxable income of 60,000 EUR and above: 35% tax rate
It’s important to note that these rates apply to the total income received, which can include various sources such as salary, passive income, and other types of income. As an individual’s income increases, they move up through the tax brackets and the corresponding tax rate is applied to the respective income range.
6. How long do you need to reside in Cyprus with the investment visa before applying for Cypriot citizenship?
With the Cyprus investment visa, individuals need to reside in Cyprus for a minimum of five years before becoming eligible to apply for Cypriot citizenship. This time period is shorter compared to the standard requirement of seven years for individuals seeking Cypriot citizenship through naturalization. By fulfilling the residency requirement of five years with the investment visa, applicants can expedite the process of acquiring Cypriot citizenship and enjoy the benefits and privileges associated with it.
