Will Cyprus golden visas be closed?

The Cyprus Audit Service demands the closure of the golden visa program.

The Cyprus Audit Service conducted a new investigation. This time the focus is on golden visa holders.

During a large-scale audit, it turned out that many foreigners received permits for permanent residence in Cyprus without fulfilling all the conditions of the investment program. Interestingly, the agency was prompted to undertake an audit by complaints about how the Cyprus Migration Department was implementing the “golden visa” program. In particular, the Cyprus Audit Service found that the supervisory authority:

     • does not conduct regular compliance checks after granting a residence permit;

     • does not ensure compliance with the provisions on the cancellation of residence permits when investors acquire permanent residence in another country or stay outside Cyprus for more than two years.

     • issues a residence permit even in cases where foreign investors buy real estate, but do not have title deeds in hand;

     • issues a residence permit upon presentation of only “unofficial evidence of payment.”

In this regard, the Cyprus Audit Service has called on the Ministry of Internal Affairs to close the golden visa program. In turn, the Ministry of Internal Affairs of Cyprus agreed that it is necessary to tighten the checks of candidates for permanent residence by investment. However, they did not want to comment on the issue of canceling the scheme.

Let us recall that in the spring of 2023 in Cyprus, the Cabinet of Ministers of the Republic of Cyprus approved amendments to the rules for issuing immigration permits to investors from third countries. The amount of investment for this type of permanent residence has remained unchanged - minimum 300 thousand euros. However, the authorities decided to tighten checks during and after granting this immigration status, as well as increase the annual minimum income amount for its holders.

Two main requirements that came into force:

1) The holder of an immigration permit must confirm every year that he still owns real estate or shares in companies in which at least 300 thousand euros have been invested.

2) The amount of the minimum annual income should be 50 thousand euros, and not 30 thousand euros, as was previously, for a spouse - 15 thousand euros, for each minor child - 10 thousand euros per year (previously for spouses and children it was 5 thousand euros per year).

Another important change in the criteria for issuing permanent residence for investment is that it is not granted to parents, adult children, or the parents of the spouse of the main applicant. They must apply for a separate immigration permit after investing at least 300 thousand euros in the country's economy.