New Rules for the Expedited Permanent Residence Permit in Cyprus (Regulation 6.2) – 2023 Update

Cyprus remains an attractive destination for investors and families seeking permanent residence in the European Union. The Permanent Residence Permit (PRP) program under Regulation 6(2) has long provided an opportunity to obtain status through an expedited procedure. However, as of May 2, 2023, significant amendments have come into force, reshaping the eligibility criteria of the program.

Here are the key updates you need to know.

1. Increased Annual Income Requirements

According to the new rules, applicants must demonstrate a guaranteed annual income of at least €50,000, up from the previous threshold of €30,000.

Additional income requirements:

• €15,000 for the spouse
• €10,000 for each minor child

Source of income:

• For investments in residential real estate (Category A), the income must come from abroad.
• For investments under other categories (B, C, D), income may be generated within Cyprus. 

2. Updated Investment Categories

The minimum investment remains at €300,000 (plus VAT, if applicable), but the list of eligible options has been expanded:

• Category A: Purchase of new residential property from a developer (resale properties are not eligible)
• Category B: Purchase of commercial real estate (offices, shops, hotels, etc.) – may be exempt from VAT
• Category C: Investment in the share capital of a registered Cypriot company employing at least five people
• Category D: Investment in Cyprus-based collective investment funds (AIF, AIFLNP, RAIF)

⚠️ Important: For residential property purchases, the investment must be fully paid before submitting the application, and the funds must come from abroad and be transferred to the developer's account in a Cypriot bank.

3. Who Can Be Included in the Application

The applicant may include:

• Their spouse
• Minor children (under 18)
• Adult children (18–25 years old), if they are unmarried, financially dependent, and enrolled in full-time higher education

Parents and parents-in-law can no longer be included in the application. Separate investments are required for them.

4. Ongoing Obligations and Compliance

The new framework provides for regular monitoring. Although the exact mechanism for annual checks has not yet been fully clarified, it is important to understand that PRP status may be reviewed if key conditions are not met.

Applicants are strongly advised to:

• Maintain the declared level of annual income
• Keep the investment intact (e.g., do not sell the property)
• Avoid any criminal prosecution – both in Cyprus and abroad

Regular compliance with these conditions will help ensure uninterrupted status as a permanent resident.

5. Validity of the Permit and Residence Card

• The residence permit is permanent, but the residence card must be renewed every 10 years
• For minor children, the card is valid until the age of 18, after which it can be renewed subject to certain conditions

Conclusion

The updated conditions for obtaining a permanent residence permit under Regulation 6(2) make the program more structured and focused on long-term investment. Despite the tightened requirements, Cyprus remains one of the most accessible and stable jurisdictions in the EU for acquiring permanent residency.

Our office provides full assistance and support at every stage of the application process — from selecting the investment option to preparing documentation and liaising with immigration authorities.

Please contact us for professional guidance and to begin your path to residency in Cyprus.