On 2 May, the Cyprus government implemented several amendments to its policies impacting third-country nationals who seek to become permanent residents based on a qualifying investment. Pursuant to Regulation 6(2) of the Aliens and Immigration Regulations, eligible investors from third countries (i.e., countries outside the EU and EEA) can become permanent residents and bring in qualifying dependents. Their permanent residence card is issued for 10 years. Upon its expiry, holders may apply for a new card that is valid for another 10 years. Individuals who become permanent residents pursuant to Regulation 6(2) must now submit proof to the immigration authorities annually that they continue to (i) hold the initial investment (or replaced it with another qualifying investment) (ii) receive the minimum applicable annual income (iii) be registered under the national health scheme in Cyprus or covered by private health insurance (iv) have no criminal records in their home country and country of residence (if applicable).

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.

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Full text of Tax Alert