Obtain a Cyprus passport in 3-5 years

Naturalization of third country nationals by years of residence

The amended Civil Registry Law, published in the Official Gazette on the 19th of December 2023, represents a significant opportunity for third country nationals who legally reside in Cyprus to apply for a passport in just 3 to 4 years, establishing the country’s approach to naturalization as the most accelerated route available in the European Union via residency (see below the Requirements to be met).

Naturalization of third country nationals by years of residence for Highly-Skilled professionals

According to article 111B(2), as per the Decision of the Council of Ministers with no. 92.018 dated 15/10/2021 regarding the Strategy of Attracting Companies to Activate and/or Expand their Activities, highly skilled third country nationals can be employed by a Cyprus company, and hence they can legally reside in Cyprus and be able to exploit the Naturalization by residence programme.

Which Cyprus companies can employ Highly-Skilled non-EU citizens

• Companies of foreign interest, operating in Cyprus, with suitable office space.
• Cypriot Shipping Companies.
• Cypriot Hi-tech/innovation companies with products related to aerospace industry, computers, IT, technology and communication, pharmaceuticals, biometrical equipment, research and development equipment, electrical machinery, chemicals and non-electrical machinery.
• Cypriot Pharmaceutical companies or with activities in the fields of biogenetics and biotechnology.
• International Institutions of Higher Education accredited by the Cyprus Agency of Quality Assurance and Accreditation in Higher Education.

Who is considered as Highly-Skilled employee

• Employees hired or to be hired as Director, Key Managerial Personnel or Specialist by a Cyprus company of foreign interest.
• Individuals who hold a university degree or equivalent qualification or experience in a corresponding employment position for a duration of at least 2 years, and with a minimum monthly salary of €2,500. (The Cyprus company / employer should meet the criteria of the Ministers’ Decision).

Requirements for Citizenship application to be met by the Applicant

• Continuous Legal Residence: the applicant should continuously legally reside in the Republic for 12 months prior the submission of the application (absence of up to 90 days is allowed).
• Extended Residence History: the applicant shall, within a period of 10 years, legally reside in Cyprus for a cumulative period of at least 3 years (provided he has passed Greek Language test at Level B1), or for at least 4 years (provided he has passed Greek Language test at Level A2) or for at least 7 years (for non-highly skilled employees with sufficient knowledge of Greek language at Level B1), immediately preceding the 12–month period mentioned above. A period of absence from the Republic of Cyprus not exceeding 90 days per year is allowed and does not affect the above required period.

• Good character and Integration Measures:

  • Demonstrated good character.
  • Sufficient knowledge of Greek language certified through a Greek Language test is necessary (either Level A2 or B1, depending on the years of residence).
  • An adequate knowledge of the basic elements of the modern political and social reality of the Republic, by passing the relevant examination conducted by the Examinations Service of the Ministry of Education.
• Suitable accommodation and a stable income, sufficient for themselves and their family members.
• Intention to reside in Cyprus.

Family Members

The following family members of the applicant are eligible to apply for the Cyprus citizenship:

• spouse and partners in civil union;
• minor children;
• dependant adult children with a disability.

What is considered as sufficient income

The monthly gross income of the applicant should be not less than €2,500.

The applicant’s minimum income is increased by 20% for the spouse or partner and by 15% for each dependent child (i.e. A family with 1 dependent child should have a min gross income of €3,375).

Submission of the Application – Timeframes – Fees & Stamps

The examination of the applications can take up to 2 years.

Government Fees of €500 is payable for the submission of the application, two stamps worth €8.54 must be affixed to the application, and an additional fee of €500 is payable upon issuance of the certificate of naturalization.

Highly skilled employees and their families can apply for an accelerated examination, which can take up to 8 months (additional €5,000 government fee applies).

Advantages of the Cyprus passport

• Holders of Cyprus passports can have European Union citizens’ rights and benefits.
• Can travel to 138 countries without a visa.

Advantages of living in Cyprus

• Mild climate, beautiful landscapes and rich culture combined with an affordable cost of living.
• Safety and high-quality healthcare (ranked 24th globally).
• Stable economy, high economic growth.
• Tax benefits.

Tax benefits

Personal Tax treatment and the Non-Domiciled Tax Status

By legally residing and being employed in Cyprus, you will become a Cyprus tax resident, enabling you to exploit the benefits of the Cyprus tax system.

In addition, you will obtain the Non-Dom tax status. Generally, an individual born to a non-Cypriot domiciled father is non-domiciled in Cyprus.

Tax benefits of Non-Domiciled Cyprus Tax Residents:

• You are taxed at your worldwide income.
• 100% tax exempt on Passive income (Dividend and interest income). Only a 2.35% GeHS (General Health System Insurance) is payable, restricted to a maximum of €4,770.
• 50% tax exemption on the remuneration from your 1st employment exercised in Cyprus, for annual remuneration exceeding €55,000. The individual should not be resident in Cyprus for at least 15 consecutive years before the commencement of his/her first employment in Cyprus.
• 20% tax exemption of the remuneration from first employment in Cyprus, which commenced after 26/7/2022 and up to and including the year 2027 by an individual who was employed outside Cyprus by a non-Cyprus resident employer for three consecutive years immediately before the commencement of his/her employment in Cyprus.
• Health Insurance coverage for you and your family under the GeHS.

The applicable personal income tax rates before any exemption applied, are the following:

Tax Incentives of Cyprus Companies

• Corporation tax rate 12.5%, lowest in Europe.
• Established wide network of Double Tax Treaties with over 60 Countries.
• Profits from sale of securities are tax exempt.
• No withholding tax is imposed on the payment of dividends, interest or royalties, made from a Cyprus Company to any company or individual in any country of the world.
• Dividend receivable by a Cyprus Company is tax exempt subject to certain criteria.
• Special Intellectual Property Tax Regime who can lead to a corporate tax rate of just 2.5%.
• Tax losses can be carried forward for 5 years to be set-off against future profits.
• Group relief is available whereby losses from a company can be set off against taxable profits of other companies in the same group.
• Exemption from capital gains tax (except on sale of immovable property situated in Cyprus).

How can a third country national be eligible for the Cyprus Passport

The easiest way to obtain a Cyprus passport, if you are a high-skilled third country national, is through your employment by a Company of Foreign Interest.

What is a Cyprus Foreign Interest Company

Cyprus companies with foreign interest are companies duly incorporated in the Republic of Cyprus, with the majority of shares held by non-EU nationals.

Companies of foreign interests must meet the following criteria to be eligible to employ third country nationals in Cyprus:

• Τhe majority of the company’s shares are owned by third-country nationals.
• Τhe ultimate beneficial owner must deposit an amount of €200,000 in an account held by the company in a credit institution licensed by the Central Bank or submit evidence of an investment amounting to €200,000, for the purposes of operating its business in Cyprus (e.g. office purchase, office equipment purchase, etc.).
• To have offices in Cyprus.

Procedure for the establishment of a Cyprus Company of Foreign Interest

1. Company Formation (timeframe: 5-7 business days).
2. Bank Account Opening – necessary for the deposit of €200,000 by the beneficial owner (timeframe: 1-3 weeks).
3. Registration with the Business Facilitation Unit (timeframe: 1-3 business days).
4. Application for Residence Permits for the Employees of the company (timeframe: 3-5 business days).
5. Issuance of residence cards by the migration (timeframe: 1 month).
6. Registration to Social Insurance and Tax Authority (timeframe:1-3 business days).
7. Renewal of permits: The permits can be renewed every 2-3 years.
8. Application for the obtainment of the Cyprus passport: Once the applicant meets the requirements listed above, the relevant application can be submitted.

Overall the timeframe for the incorporation of the company till obtaining the Residence Permit would be approximately 5 – 7 weeks.

How can TOTALPRO help?

TOTALPRO has significant experience in the immigration programs offered in Cyprus. Our professional team can assist and guide you through in all aspects of your application.

We can act as your single point of contact to set up your business, to help you and your family settle (assist with real estate agents, introduction to schools etc.), direct you to professionals to help you pass the necessary exams, obtain residency permits for you and your family, and comply with all ongoing requirements.

Please get in touch with us for a free consultation at info@totalpro.eu.