Demand for the Cyprus permanent residency scheme is gaining momentum, here in this article we have tried to discuss why Cyprus is becoming an ideal location for investors wanting to access Europe. Historically, Cyprus has been a regional hub for business, attracting global companies due to its strategic location at the crossroad of three continents Europe, Africa, and Asia, economic stability, favorable fiscal and legislative framework, highly developed infrastructure, very good airline, and shipping connectivity, easiness to set up and operate a company, government incentives promoting entrepreneurship, and attractive tax incentives.
The Aphrodite Island also stands out for its high quality and pleasurable way of life, natural beauty and rich history, clean and fresh environment with high living standards, and world-class educational institutions and medical centers. It was ranked as the 5th best place for lifestyle amongst major European cities[1] and is certainly a fantastic place to live and bring up a family. In line with the government’s aim to surge foreign investment, the country has recently eased the measures for issuing Permanent Residency Permits for those who wish to invest in Cyprus. This comprised new incentives for residency, taxes, and employment that entirely modernized and adapted to the needs of today’s companies.
Foreign investors aiming to obtain Cyprus permanent residency can take advantage of immense opportunities in several sectors including tourism, renewable energy, startup ecosystem, ICT, crypto and blockchain, shipping, and financial services. The country’s accession to the European Union and adoption of the Euro has launched a new era of opportunities, so it turned into an ideal location for inbound and outbound investments in the EU.
Investors can also avail of the incentives provided for the relocation of headquarters to Cyprus, and the reforms including the upgrade of infrastructure for core technologies and mechanisms for the facilitation of strategic investments[2]. Moreover, Cyprus offers one of the most attractive tax regimes in Europe and has one of the EU’s lowest corporate income tax rates at 12.5%.
Reasons why Cyprus permanent residency is for investors wanting to access Europe
Promising Renewable energy
Cyprus is putting efforts to comply with EU guidelines on decreasing greenhouse gas emissions from energy generation, therefore, the growth of Renewable Energy Sources is expected to skyrocket in the next years. Renewable energy technologies provided approximately 11.7% (340 MW) of the electricity generated on the island in 2020[3].
But Cyprus aims to quadruple its renewable energy share to 23% between 2021 and 2030, according to the Cyprus Renewable Energy Roadmap (CERA), and the island will be able to produce 25% to 40% of its total electricity from solar power by 2030. As a result, there is a lot of opportunity for investors who are looking to obtain a Cyprus permanent residency to benefit from this potential.
Prospering Startup ecosystem
Advanced research, a growing startup environment, and a pool of highly educated and experienced personnel, along with a variety of incentives, and development programs make Cyprus an ideal hub to start a business and scale up. The robust IP Box Regime and the Cyprus Startup Visa Scheme[4], allow brilliant entrepreneurs from outside the EU and the European Economic Area to be given working licenses to create businesses in Cyprus and attract world-class innovation-based concepts and successful enterprises.
Startups that bolster entrepreneurship and innovation can also avail of the government’s tax breaks. Therefore, entrepreneurs who are seeking a Cyprus residency can benefit from this healthy startup ecosystem.
Authentic Mediterranean destination
Cyprus’ tourism and hospitality have long been an essential contribution to the country’s economy, accounting for more than 15% of the GDP. With year-round weather, stunning natural views, and rich and diverse culture and history, the nation offers a plethora of stylistic options for every desire and taste. Being an established and resilient tourism destination, which features natural beauty and advanced infrastructure, there is huge potential for investors to develop hotel chains, luxury resorts, lodges, and restaurants.
Well-established Financial Hub
Cyprus is becoming Europe’s foremost investment hub for funds and asset management firms, with direct access to important markets. According to the latest statistics from the Cyprus Securities and Exchange Commission[5], the number of investment funds surged to 298 in Q3 2021, while the assets under their management increased to €11.6 billion.
As an EU member nation, Cyprus complies with all EU Directives and Regulations, allowing fund managers who desire to create or register with the Cyprus Securities and Exchange Commission to benefit from the full range of EU passporting rights, which enables firms that are authorized to trade freely in any other minimal additional authorization.
Technology Hub
To develop and support the technology industry, the government has launched numerous programs and is updating the legislative framework frequently with global best practices, while rapidly adjusting to innovation and technological trends. A comprehensive incentive package has been announced for ICT firms migrating to Cyprus, which includes appealing benefits such as an updated immigration regime allowing the employment of specialized ICT professionals from non-EU countries, and tax incentives[6] for individuals looking to obtain a Cyprus permanent residence visa and relocate to Cyprus.
Cyprus permanent residency holders’ rights
Holders of Cyprus permanent residence visa and their family members enjoy the same rights Cyprus citizens have. They benefit from a cheap cost of living that is among the lowest in Europe and very competitive residential property prices. Cyprus provides expats and their families a privileged lifestyle in a secure and dynamic location, perfectly mixing traditional and contemporary aspects while giving the ideal combination to enjoy life and a fantastic work-life balance.
Cyprus permanent residency holders can travel without a visa to more than 170 countries and are eligible to apply for Cyprus citizenship after 7 years of residing. The Cyprus permanent residency is granted within two months, and it is valid for life and can be passed down to dependents and spouse. This is one of the reasons why Cyprus is becoming an ideal location for investors wanting to access Europe.
Cyprus permanent residency Requirements
To qualify for obtaining a Cyprus permanent residence visa, applicants must contribute around €300,000 by purchasing real estate. Properties must be new, not resale, and purchased directly from a real estate developer. The main applicant must have an annual account of at least €30,000. A visit to Cyprus once every 2 years to retain permanent residency status is required.
For more information required about acquiring a Cyprus permanent residency, and the financial goals, please visit our website here.
After reading this article I am sure you all must have got an idea why Cyprus is an ideal location for investors wanting to access Europe.
References:
[1] https://www.pwc.com.cy/en/publications/assets/your-journey-to-cyprus2022.pdf
[2] https://www.pwc.com.cy/en/publications/assets/your-journey-to-cyprus2022.pdf
[3] https://www.investcyprus.org.cy/energy-investing/
[4] https://www.investcyprus.org.cy/entrepreneurship-and-innovation/
[5] https://www.investcyprus.org.cy/investment-funds/
[6] https://www.investcyprus.org.cy/information-and-communication-technology/
