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Large investment projects call for changes to permanent residency programme

Comment Pissarides Banks In Cyprus Remain Focused On Traditional Sectors, Such As Construction And Trade
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Large investment projects and real estate developers called on the government on Thursday to make changes to the permanent residency programme for third country nationals to help attract more investors to Cyprus.

The Association of Large Investment Projects (Smae) and the Land and Building Developers Association (LBDA) have sent a letter to the foreign and interior ministers with suggestions to make the permanent residency programme (PRP) “more functional and easily accessible.”

The business groups called for enhancing the PRP’s attractiveness following the abolition of the citizenship by investment (CBI) programme.

The abolition of the CBI, in combination with the impact of the Covid-19 pandemic, they said, force stakeholders to create new conditions for investment opportunities in Cyprus. They stressed the need for an immediate review of current programmes and measures.

The PRP grants permanent residence status to foreign nationals with the purchase of real estate property worth at least €300,000. Applicants must also make a three-year fixed deposit of €30,000 in a Cyprus bank. They are also required to visit Cyprus to provide their biometric data and visit the country every two years.

The two business groups suggest the creation of biometric stations in Cyprus’ embassies and consulates abroad such as in China, Vietnam, the United Arab Emirates, the UK, Russia, Jordan and South Africa for the electronic submission of applications without the need for applicants’ physical presence in Cyprus.

Another suggestion proposes the annual income of dependent family members (spouse, dependent parents) be included in the figure if they are also included in the application for the residence permit.

“It goes without saying that the declared annual family income can be verified by presenting sufficient supporting documents,” they said.

At the moment, applicants must provide evidence of a secured annual income of at least €30,000 sourced from outside Cyprus while additional secured income requirements apply in case the dependent spouse, children, and parents are included in the application.

They also suggest the abolition of the requirement for the deposit of €30,000 in a Cypriot bank, a procedure they said was “time-consuming.”

If this is not possible, they said, perhaps applicants can be allowed to deposit this amount in a bank account within the EU or a special government fund on the condition that it will be returned after three years.

It is also proposed that the possibility is given for two or more people to jointly invest in real estate without the need for any kinship between them while approved applicants be given the right to work in Cyprus, as well as the possibility of conducting business activities.

Another suggestion is to give permanent residency card holders the right to travel to EU member states and the UK for a few days without the need for a visa.

They also recommend the abolition of the requirement for PRP holders to visit Cyprus every two years and if this is not possible, to at least make it a requirement only for the principal applicants and not for all family members to whom a residence permit has been granted. They also call for increasing the age limit of dependents from 25 to 28, to offer “additional attractiveness to the programme.”

The groups called for expediting procedures for Cyprus’ inclusion in the Schengen area. This, they argued would make Cyprus’ PRP more attractive compared to the schemes of other countries.

“The fact that Cyprus is outside Schengen is a substantial and very important disadvantage in relation to competing European countries,” they said.

The group stressed that amendments to the PRP were necessary so that it can compete with the programmes of other European countries that provide their beneficiaries many of the rights it suggests Cyprus adopts.

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