26.10.2024
RESIDENCE PERMIT
How to Move to Cyprus in 2024
Types of residence permits, their conditions, how much money you need, additional requirements and the advantages of Cyprus
In this article we look in more detail at the steps you need to take to move to Cyprus, where to start and how to avoid costly mistakes.
Cyprus remains one of the most open countries in the European Union. To get a residence permit, it is enough to prove an income sufficient to live on the island or to get a job with a local company.
Immigrants ready to invest €300,000 or more in Cypriot real estate can apply for permanent residence without any intermediate statuses.
The permanent residence card is issued for 5 years with the right to renew. It is quite hard to lose — you would need to be absent from Cyprus for more than 2 years or commit a crime on the island. It gives the right to enter Cyprus even if Cyprus’s borders are closed to foreigners.
The permanent residence card is issued for 5 years with the right to renew. It is quite hard to lose — you would need to be absent from Cyprus for more than 2 years or commit a crime on the island. It gives the right to enter Cyprus even if Cyprus’s borders are closed to foreigners.
Who lives in Cyprus and how to get there
To enter the island you need a Schengen multi-entry visa on which the “first entry rule” has already been fulfilled, or a tourist visa of the Republic of Cyprus.
As of August 2024, there is one direct flight from Moscow to Cyprus and many connecting flights, mostly with a stopover in Yerevan.
The island’s population is only about 1.26 million people. The capital of Cyprus, Nicosia, is not on the coast. Among immigrants, coastal cities such as Larnaca, Paphos and Limassol are more popular. The largest Russian-speaking community and the offices of major IT companies are concentrated in Limassol.
About 80,000 Russian-speaking immigrants live in Cyprus. The official language is Greek, but English is quite enough for everyday life — 80% of Cypriots speak it fluently. In the service sector, many people know Russian.
For most steps in obtaining legal status in Cyprus, an immigrant needs a bank account with one of the local banks. Opening an account and topping it up by transfer from banks in Russia, the former CIS countries and the Middle East may be difficult in 2024. It is important to be able to document that the money was earned legally and that taxes were paid on it.
Everything on the island moves slowly, as everywhere in southern Europe. “Siga-siga” means “slowly” in Greek and is a favorite expression of Cypriots. When planning your move, be prepared for the unhurried pace at which any urgent and important matters are handled in Cyprus.
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Ways to move to Cyprus in 2024
The conditions of entry to Cyprus differ for EU citizens and citizens of third countries. “Third countries” means states that are not in the EU, including Russia and other former Soviet countries.
For everyone else who wants to move to Cyprus, there are several routes:
- Visitor visa (pink slip). A 1-year residence permit with the right to extend or change status, without the right to work in Cyprus
- Work visa. A residence permit for the term of the contract with an employer (from 1 year) with the right to extend or change status.
- Student visa. A residence permit for 1 year. It can be extended until graduation.
- Permanent residence for a real estate investment of €300,000 or more.
- Permanent residence for registering an international company with a share capital of €260,000 or more.
The applicant can obtain a residence permit not only for themselves but also for family members. This rule applies to all grounds except the student visa.
EU citizens do not need a visa to live in Cyprus. Within 4 months of arriving on the island they must obtain a Yellow Slip registration certificate. The certificate is issued for an unlimited period and gives the holder all civil rights except voting and working in the civil service.
Family members of an EU citizen can also obtain a Yellow Slip, even if they are not EU citizens.
Family members of an EU citizen can also obtain a Yellow Slip, even if they are not EU citizens.
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How an immigrant’s status relates to their employment options in Cyprus
Moving to Cyprus attracts immigrants with opportunities for employment and doing business. It is worth learning in advance about the restrictions that your status imposes. For example, you can register a business in Cyprus without any residence permit at all, but not everyone can take a job in their own company, and not in any position.
Finding employment is not so simple either. Only a company with foreign participation (foreign interest company) can hire a foreigner under a simplified procedure. To employ a candidate from a third country in an ordinary Cypriot company, the employer must obtain permission from the Ministry of Labour of the Republic of Cyprus.
In terms of employment, the strongest document is the Yellow Slip registration certificate. It is available not only to EU citizens but also to their family members and to spouses of native Cypriots. With a Yellow Slip an immigrant can take a job with any Cypriot company and also work as a self-employed person.
Work visa (Work Permit) — allows you to work and live in Cyprus for the term of the contract. The work visa for an employee is arranged by the employer. A work visa holder can obtain a family reunification residence permit for their family members (Spouse Employee).
The spouse of an employee (Spouse Employee) employed by a Cypriot company has almost the same employment and business opportunities as a Yellow Slip holder. The only option unavailable with this status is self-employment.
Business owner. Unlike some other countries, Cyprus does not grant a residence permit for the mere fact of registering a local legal entity.
A business owner can obtain a residence permit through employment in their own company. It must qualify as a foreign interest company (Foreign Interest Company) — with foreign capital of more than 50%, actually at least €200,000.
In such a company the owner can appoint themselves a director and obtain a work permit in Cyprus.
The investor permanent residence status has 2 varieties.
If the investor registered the property in their own name as an individual, they may not hold any position even in their own company and can only be its owner (Ultimate Beneficial Owner) or shareholder (Shareholder).
Another option is buying property through a legal entity. In this case the investor can hold the position of director in the company with the right to conduct operating activities.
A student residence permit allows you to work officially up to 20 hours a week, and during summer holidays up to 38 hours a week. This allows students to legally earn extra income or do internships while looking for a future permanent job.
Holders of a visitor visa (Visitors Permit) are the least “empowered” category of immigrants on the labour market. They can only be owners or shareholders of a company registered in Cyprus. This type of visa suits people who have sources of passive income outside the island.
Work visa (Work Permit) — allows you to work and live in Cyprus for the term of the contract. The work visa for an employee is arranged by the employer. A work visa holder can obtain a family reunification residence permit for their family members (Spouse Employee).
The spouse of an employee (Spouse Employee) employed by a Cypriot company has almost the same employment and business opportunities as a Yellow Slip holder. The only option unavailable with this status is self-employment.
Business owner. Unlike some other countries, Cyprus does not grant a residence permit for the mere fact of registering a local legal entity.
A business owner can obtain a residence permit through employment in their own company. It must qualify as a foreign interest company (Foreign Interest Company) — with foreign capital of more than 50%, actually at least €200,000.
In such a company the owner can appoint themselves a director and obtain a work permit in Cyprus.
The investor permanent residence status has 2 varieties.
If the investor registered the property in their own name as an individual, they may not hold any position even in their own company and can only be its owner (Ultimate Beneficial Owner) or shareholder (Shareholder).
Another option is buying property through a legal entity. In this case the investor can hold the position of director in the company with the right to conduct operating activities.
A student residence permit allows you to work officially up to 20 hours a week, and during summer holidays up to 38 hours a week. This allows students to legally earn extra income or do internships while looking for a future permanent job.
Holders of a visitor visa (Visitors Permit) are the least “empowered” category of immigrants on the labour market. They can only be owners or shareholders of a company registered in Cyprus. This type of visa suits people who have sources of passive income outside the island.
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How to choose the right type of visa
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Taxes in Cyprus
Cyprus is one of the most attractive tax jurisdictions in the European Union.
To get the most out of the Cypriot tax regime, you need to become a non-domiciled tax resident of the republic.
What that means, and more detail on personal and corporate income taxes in general, can be found in our separate article.
Here we will limit ourselves to brief information.
To get the most out of the Cypriot tax regime, you need to become a non-domiciled tax resident of the republic.
What that means, and more detail on personal and corporate income taxes in general, can be found in our separate article.
Here we will limit ourselves to brief information.
Personal income tax has a progressive scale. No tax is charged at all on income below €1,600 per month (€19,500 per year).
- up to €19,500 - 0%
- €19,501 - 28,000 - 20%
- €28,001 - 36,300 - 25%
- €36,301 - 60,000 - 30%
- over €60,000 - 35%
Many sources of income in Cyprus are excluded from the tax base, for example interest on bank deposits, profit from the sale of securities or dividends.
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Corporate income tax, by contrast, is flat at 12.5%. There are also numerous deductions from the tax base for businesses. Thanks to deductions, the effective corporate tax rate can be reduced to 2%. This is how the special IP-Box tax regime works, which the Cypriot authorities designed to attract IT entrepreneurs. Read more about the IP-Box in the article on taxes in Cyprus.
As in any other jurisdiction, Cyprus has VAT (from 0 to 19% for different types of activity) and capital gains tax (20%, with deductions).
VAT is paid by all buyers of new-build property, both legal entities and individuals. You can save by registering a house or apartment in the name of an individual — a reduced VAT rate of 5% applies to this category of buyers. When buying through a company you will have to pay the standard 19%.
VAT is paid by all buyers of new-build property, both legal entities and individuals. You can save by registering a house or apartment in the name of an individual — a reduced VAT rate of 5% applies to this category of buyers. When buying through a company you will have to pay the standard 19%.
Resale property transactions are subject to transfer tax. For a property worth up to €85,000 it is 3%, from €85,001 to €170,000 — 5%, and anything above — 8%.
A peculiarity of the Cypriot tax system is the special defence contribution, which is calculated at different rates for different sources of income. Non-domiciled residents of the island are exempt from the defence contribution.
The Cypriot tax system offers opportunities for optimizing personal finances and running a business efficiently. To take full advantage of it and avoid costly mistakes, timely tax planning is needed.
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