Cyprus offers investors from non-EU countries a permanent residence permit under Regulation 6(2) of the Aliens and Immigration Regulations. Many Israelis consider this route when buying an apartment on the island.
Main conditions
- An investment of at least €300,000, excluding VAT, paid in full before the application is filed. For an investment in residential property, it must be a new property bought from a developer.
- Annual income from abroad of at least €50,000, plus €15,000 for a spouse and €10,000 for each child.
- A clean criminal record from the country of citizenship and, if different, from the country of residence.
- The applicant may not work as an employee in Cyprus.
Who is included
The permit can include a spouse and minor children. Since 2023 parents and adult children are no longer included as dependants.
The requirements continue after the permit is granted
Every year you must show that the investment is still held, that the minimum income is maintained and that there is health insurance. Failing to do so may lead to loss of the permit.
What permanent residency does not give you
- It is not citizenship and not an EU passport. Cyprus’s citizenship-by-investment programme was abolished in 2020.
- It does not allow you to live and work freely in other EU countries.
- It does not automatically make you a Cyprus tax resident or end your Israeli tax residency. Tax residency is determined by separate tests in each country.
Combining it with the purchase
If residency is also a goal, choose the property to meet the conditions: a new property from a developer, of suitable value, with proof of full payment. The application is filed in Cyprus, usually through a local lawyer. We coordinate with him and review the purchase itself, as set out in our guide to buying property in Cyprus.
Where do you go from here?
At Paz Israel & Co. Law Office we accompany real estate investors in Israel, Israelis buying property in Cyprus and foreign investors buying in Israel: checking the property and the seller, negotiating the contract, accompanying you through registration and coordinating with tax advisers. In Cypriot transactions we work in coordination with a local Cypriot advocate. For more information see our real estate investor services page, or contact us to schedule a meeting in Tel Aviv, Jerusalem or Modi’in.
This article provides general information, is correct as of the time of writing, and does not constitute legal or tax advice. Cypriot law is checked in every transaction with a local advocate.