ey.com/globaltaxguides
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EY Street address:
Mail address: Jean Nouvel Tower P.O. Box 21656 6 Stasinou Avenue 1511 Nicosia Nicosia Cyprus Cyprus
Executive contacts
Petros Liassides
+357 22-209-999
Email: petros.liassides@cy.ey.com
Philippos Raptopoulos +357 25-209-700 (resident in Limassol) Email: philippos.raptopoulos@cy.ey.com
Immigration contact
Panayiotis Thrasyvoulou
A. Income tax
+357 22-209-999 Email: panayiotis.thrasyvoulou@cy.ey.com
Who is liable. Residents are taxed on their worldwide profits or other benefits from a business, profits or other benefits from an office or employment, dividends, interest or discounts, pensions and any rental income arising from immovable property. Nonresidents are taxed only on their Cyprus-source income from employment exercised in Cyprus, a permanent establishment in Cyprus, rental of immovable property located in Cyprus and pen sions from employment exercised in Cyprus.
An individual is resident in Cyprus if he or she is present in Cyprus for an aggregate of more than 183 days in any calendar year.
The definition of tax resident also includes an individual who does not stay in any other state for one or more periods exceeding in aggregate 183 days in the same tax year and who is not con sidered a resident for tax purposes in any other state in the same tax year, provided that the individual meets all of the following criteria:
• He or she stays in Cyprus for at least 60 days in the tax year.
He or she exercises any business in Cyprus and/or is employed in Cyprus and/or holds an office for a person tax resident in Cyprus at any time during the tax year.
• He or she maintains a permanent residence in Cyprus that is owned or rented by him or her.
Domiciled in Cyprus. An individual is considered to be domiciled in Cyprus if he or she has a domicile of origin as defined in the Wills and Succession Law or if he or she has been a tax resident of Cyprus for at least 17 out of the 20 years prior to the tax year. Nevertheless, the following individuals are not considered to be domiciled in Cyprus:
• An individual who has obtained and maintained a domicile of choice outside Cyprus in accordance with the Wills and Succession Law, provided that he or she has not been a tax
resident of Cyprus for 20 consecutive years preceding the tax year.
• An individual who was not a tax resident of Cyprus for a period of 20 consecutive years prior to 16 July 2015.
Income subject to tax. The taxation of various types of income is described below.
Employment income For an individual tax resident of Cyprus, tax is levied on all gains or profits from any office or employment exercised in Cyprus or abroad. Foreign-source income from employment exercised abroad for an employer not resident in Cyprus or for a permanent establishment outside Cyprus of an employer resident in Cyprus, for a total aggregate period of more than 90 days in any calendar year, is exempted. This is known as the “90-day rule.”
For an individual who is a non-tax resident of Cyprus, tax is levied on gains or profits from any office or employment exer cised in Cyprus only.
Taxable income from employment includes the estimated value of any accommodation and other allowances from employment, whether paid in cash or in kind (for example, the private use of a saloon car [a sedan]).
Tax is levied on the benefit in kind related to loans or other finan cial facilities granted to an individual (either tax resident or nontax resident), director or shareholder (including the spouse and relatives up to the second degree of kindred). Such benefit is assessed as being equal to 9% per annum, calculated on the monthly balance of the loan or financial facility outstanding, less any actual interest charged.
Nonresidents of Cyprus who take up employment in Cyprus may deduct the lower of 20% of their salary or EUR8,550. This deduction applies for a period of five years beginning from 1 January of the year following the year of beginning of employ ment (provided the employment began during or after 2012). This deduction applies in relation to employment that commenced up to and until the 2025 tax year inclusive.
Nonresidents of Cyprus who take up employment in Cyprus after 1 January 2012 and have remuneration of more than EUR100,000 may be allowed a 50% deduction from their employment income. This deduction applies for the first 10 years of employment. The 50% deduction is not available to individuals who began their employment on or after 1 January 2015 and meet one of the fol lowing conditions:
• They were tax residents of Cyprus for a period of three of the five years preceding the year of beginning of employment.
• They were tax residents of Cyprus in the year preceding the year of beginning of employment.
The Tax Department allows individuals to claim only one of the above two deductions during a tax year.
Self-employment and business income Residents are subject to income tax on self-employment income. Nonresidents are subject to income tax on self-employment income received from the car rying on of a business in Cyprus.
Gross income derived from Cyprus by nonresident professionals, artists, athletes and entertainers is subject to 10% final withholding tax.
Rental income. Residents are subject to income tax on rent received from immovable property located anywhere in the world. Nonresidents are subject to income tax on rent received from immovable property located in Cyprus. Rent received by residents who are also considered to be domiciled in Cyprus are also subject to the Special Contribution to the Defence Fund (SDC) at a rate of 3%. The SDC is applied on 75% of the gross rent receivable.
Investment income. Dividends and interest received are exempt from income tax.
Dividends received by resident individuals who are considered to be domiciled in Cyprus are subject to the SDC at a rate of 17%. Interest received by resident individuals who are considered to be domiciled in Cyprus is subject to the SDC at a rate of 30%.
Profits from the sale of securities are exempt from income tax both for individuals and legal persons (also, see Capital Gains). Withholding tax is not imposed on dividends and interest paid to nonresidents. Royalties and premiums derived from Cyprus by nonresidents from sources in Cyprus are subject to a 10% with holding tax. Income received by nonresidents from film rentals is subject to a 5% withholding tax. Withholding taxes on income paid to nonresidents are final taxes.
Pension income. Pensions received by residents for employment exercised outside Cyprus may be taxed at a special tax rate of 5% for amounts exceeding EUR3,420.
Directors’ fees. Directors’ fees are considered compensation and are taxed in the same manner as income from employment.
Capital gains. Capital Gains Tax is imposed at a rate of 20% on profits from the disposal of the following:
• Immovable property located in Cyprus
• Shares of companies that own immovable property located in Cyprus
• Shares of companies that either directly or indirectly participate in a company or companies that own immovable property located in Cyprus if at least 50% of the market value of such shares is derived from the relevant property
The disposal of shares listed on a recognized stock exchange is exempt from Capital Gains Tax.
Trading profits derived from disposal of shares of companies that directly or indirectly own immovable property in Cyprus are subject to Capital Gains Tax if such profits are exempt under the Income Tax Law.
For the disposal of shares of companies that directly or indirectly own immovable property in Cyprus, the disposal proceeds sub ject to Capital Gains Tax are restricted to the market value of the immovable property owned directly or indirectly by the company whose shares are sold.
For a disposal between related parties, the disposal proceeds subject to CGT are determined by reference to the market value of the property sold at the date of disposal.
An exemption from Capital Gains Tax is granted with respect to gains from the disposal of immovable property acquired between 17 July 2015 and 31 December 2016 if all of the following conditions are satisfied:
• The property consists of land, buildings or land and buildings.
• The property is acquired from an independent third party.
• The property is not acquired through an exchange of property or through a donation or gift.
The gain is the difference between the sale proceeds and the original cost of the property, adjusted for increases in the cost-ofliving index. No other assets are subject to capital gains tax.
The following lifetime exemptions from tax on capital gains derived from property sales are available to individuals.
Amount of
Type of exemption property EUR
Ordinary property 17,086
Agricultural land 25,629
Private residence 85,430
Deductions
Deductible expenses The range of deductible expenses allowed in Cyprus is limited. Membership fees for trade and professional organizations and documented donations to approved charitable institutions are fully deductible.
Personal deductions and allowances The following are the prin cipal deductions and allowances permitted.
Deduction or allowance
Allowable amount
Contributions to social insurance and other approved funds (for example, pension funds, provident funds and medical funds); the total contributions to the social insurance and other approved funds are restricted to 1/5 of taxable income) Various Life insurance premiums paid (certain restrictions exist) Various
Business deductions. All expenses incurred wholly and exclu sively in the production of taxable income are deductible. In addition, the following allowances are given for depreciation and amortization:
• Plant and machinery: A straight-line allowance of 10% a year is given on most capital expenditure, except expenditure on certain automobiles. The allowance is increased to 20% for additions in 2012 through 2018.
• Industrial buildings: A straight-line allowance of 4% a year is available for industrial buildings. This allowance is increased to 7% for additions in 2012 through 2018.
• Disposal of assets: On the disposal of assets other than build ings, if the sales proceeds are less than the remaining depre ciable base, a further allowance is granted, up to the difference.
If sale proceeds exceed the depreciable base, the excess (up to the amount of allowances received) is included in taxable income.
Rates. Income derived by Cyprus residents, other than capital gains income, is taxed at the following rates.
Taxable income Tax rate Tax due Cumulative tax due EUR % EUR EUR 0 to 19,500 0 0 0 19,500 to 28,000 20 1,700 1,700 28,000 to 36,300 25 2,075 3,775 36,300 to 60,000 30 7,110 10,885 Over 60,000 35 —
Spouses are taxed separately, not jointly, on all types of income.
Employment and business income received by nonresidents, as well as rental income, is taxed at the rates that apply to residents.
Relief for losses. Operating losses may be carried forward for five years from the end of the year of assessment.
B. Other taxes
Estate and gift taxes. Cyprus does not impose estate tax or gift tax.
Special contribution for employees, self-employed individuals and pensioners in the private sector. The Special Contribution for the Employees, Self Employed and Pensioners in the Private Sector Law has been abolished as of the 2017 tax year.
C. Social security
Under the Cypriot Social Insurance Scheme, contributions to the Social Insurance Fund are made monthly on the gross emolu ments of each employee. As of 1 January 2019, employers and employees must make equal social security contributions at a rate of 8.3% on monthly compensation up to the maximum monthly insurable amount, which is currently EUR4,784 (yearly maxi mum insurable amount of EUR57,408 The employer is respon sible for payment of both contributions.
The employer is also responsible for contributing 1.2% to the Redundancy Fund, 0.5% to the Human Resource Development Authority Fund and 2% to the Social Cohesion Fund out of the monthly gross emoluments of the employees. Except for the contributions to the Social Cohesion Fund, the others are capped to the maximum insurable amount as stated above.
Self-employed individuals must contribute to the social security scheme at a rate of 15.6% on monthly income. Minimum and maximum monthly incomes of self-employed individuals are classified according to the type of business, profession or voca tion.
Foreign nationals working in Cyprus must contribute to the Cyprus social security system unless either of the following applies:
• They can claim exemption according to bilateral agreements entered into by Cyprus (applicable for employees working in Cyprus for periods of approximately up to three years).
Normally, coverage for one to two years is permitted. However, the two-year period can be extended if the competent institutions of the two countries give their consent. Cyprus has entered into bilateral agreements with Australia, Austria, Canada, the Czech Republic, Egypt, Greece, the Netherlands, Quebec, Serbia, the Slovak Republic, Switzerland, Syria and the United Kingdom.
• They are nationals of the European Union (EU), European Economic Area (EEA) or Switzerland who are in Cyprus on secondment. Normally, coverage for up to two years is permit ted. Such individuals should apply for a certificate of coverage issued by the social insurance authorities of their home jurisdic tions in order to be exempted from social insurance contribu tions in Cyprus.
The bilateral agreements that Cyprus has concluded with EU member states have been replaced by the EU Regulations 883/04 and 987/09 which coordinate the social security systems of the member states.
D. General Healthcare System
The General Healthcare System (GHS) is applicable as of 1 March 2019 (Phase A). Based on the provisions of the GHS law, employers must withhold from their employees’ salaries relevant contributions and remit these together with their contri butions to the social insurance department. In addition, the law provides that persons who are making interest, dividend or rental payments to individuals are also obliged (conditionally) to make a withholding with respect to GHS contributions and remit these contributions to the Tax Department. GHS contributions are made at the following rates, which are effective from 1 March 2020.
Rate (%)*
Every employee on his or her emoluments 2.65
Every employer on his/her employee’s emoluments 2.90 Every self-employed on his or her emoluments 4.00
On the pension income of every pensioner 2.65
On the emoluments of any person who holds or exercises an office 2.65
Any legal or physical person who, or the government that, is responsible for paying the emoluments of an officer, on the emoluments of the officer 2.90
A person earning income such as rental, dividends and interest income 2.65
The fund of the government on the emoluments and pensions of the persons of the first, third and fourth items above 4.70
* For a three-month period (April 2020 to June 2020), reduced contribution rates applied.
If the sum of an employee’s emoluments, self-employed emolu ments, pension income, emoluments of any person who holds or exercises an office and the income from dividends, interest and rent is in excess of EUR180,000, the amount of income on which the contribution is calculated is capped at EUR180,000.
EUR180,000 is calculated cumulatively in the following
Emoluments from employment
Emoluments from self-employment
Emoluments from
as officers
and rental income
E. Tax filing and payment procedures
The tax year in Cyprus is the same as the calendar year.
As of the 2021 tax year, all individuals who have taxable income in Cyprus must electronically file a personal tax return by 31 July of the year following the tax year (that is, the tax return deadline for 2021 is the 31 July 2022). The Council of Ministers has the power to issue a decree regarding the individuals who can be exempted from this obligation. Before the 2021 tax year, resident and nonresident individuals whose gross income does not exceed EUR19,500 were not required to file tax returns.
The employer should withhold the relevant income tax from employees’ salaries through the Pay-As-You-Earn (PAYE) pro cess. Income tax must be withheld on a monthly basis and remit ted to the Income Tax Department of Cyprus. In addition, the employer must withhold the relevant social insurance and GHS contributions of the employee and remit them to the Social Insurance Department of Cyprus together with the relevant employer’s social insurance and GHS contributions by the end of the month following the month of assessment.
Each individual who is considered to be self-employed but has no obligation to submit audited financial statements (on the basis that the individual has turnover of less than EUR70,000), must file electronically a personal income tax return by 31 July of the year following the tax year. The final personal tax of an individ ual must be settled by the same date.
Self-employed individuals preparing audited financial statements must submit electronically their personal tax return within 15 months after the end of the tax year (that is, the 2021 tax return should be filed electronically by 31 March 2023). The final tax for self-employed individuals preparing audited finan cial statements is due by 1 August of the year following the tax year.
Overdue tax is subject to interest at a rate of 1.75% per year (rate applicable as of 1 January 2020). In addition, any person failing to pay the tax due by the payment due date is liable to a monetary charge of 5% on the tax due date. An additional monetary charge of 5% is imposed on the tax due if the tax due is not settled within two months from the deadline for payment of the relevant tax liability.
F. Double tax relief and tax treaties
Residents are entitled to a credit for foreign taxes paid, up to the amount of Cyprus tax payable on the same income, regardless of whether a tax treaty applies.
Cyprus has entered into double tax treaties with the following jurisdictions.
Andorra Hungary Russian
Armenia Iceland Federation
Austria India San Marino
Azerbaijan Iran Saudi Arabia
Bahrain Ireland Serbia
Barbados Italy
Seychelles
Belarus Jersey Singapore
Bulgaria Kazkahstan
Slovak Republic
Belgium Kuwait Slovenia
Bosnia and Kyrgyzstan South Africa
Herzegovina Latvia Spain
Canada Lebanon Sweden
China Mainland Lithuania Switzerland
Czech Republic Luxembourg Syria
Denmark Malta Thailand
Egypt Mauritius Ukraine
Estonia Moldova USSR (a)
Ethiopia Montenegro United Arab
Finland Netherlands Emirates
France Norway United Kingdom
Georgia Poland United States Germany Portugal Uzbekistan
Greece Qatar Yugoslavia (b) Guernsey Romania
(a) Cyprus honors the USSR treaty with respect to republics of the Common wealth of Independent States (CIS). (b) Cyprus generally honors the treaty with the former Yugoslavia.
These agreements usually allow expatriates to obtain credits against taxes levied in the country where the taxpayer resides. In general, the taxpayer pays no more than the higher of the two rates.
G. Visas
Visas are not required for citizens of an EU member state, Iceland, Liechtenstein, Norway or Switzerland. EU nationals may enter Cyprus with their national identity card if it contains a photo identification.
Citizens of countries on a list of countries do not need a visa for a stay of up to 90 days if they are bona fide visitors and if Cyprus has entered into bilateral agreements with the citizens’ countries.
The categories of visas are discussed below.
Short-stay or travel visas (multiple-entry visas). Short-stay or travel visas (multiple-entry visas) allow aliens who seek entry to Cyprus for reasons other than immigration to enter once or sev eral times. The duration of each visit may not exceed three months in any half-year, beginning from the date of first entry. In general, this visa may be issued once or several times. For aliens who need to travel frequently to Cyprus, such as for business, short-stay visas may be issued for several visits if the total length of these visits does not exceed three months in any half-year.
Airport transit visas. Airport transit visas are required for aliens of certain countries. They allow these aliens to pass through the international transit area of Cypriot airports without actually entering the national territory of Cyprus, during a stop-over or transfer between two stages of an international flight. The require ment to have this visa is an exception to the general right to travel without a visa through Cyprus. Nationals from Afghanistan, Bangladesh, Congo, Eritrea, Ethiopia, Ghana, Iran, Iraq, Nigeria, Pakistan, Somalia, Sri Lanka and Turkey are required to possess an airport transit visa. Citizens of these countries are exempt from the airport transit visa requirement if they are holders of residence permits of an EU or EEA member, Andorra, Canada, Japan, Monaco, San Marino or the United States.
Group visas. Group visas are transit visas or visas limited to a maximum stay of 30 days that may be attached to a group passport unless the national law provides otherwise. They may be issued to groups of aliens formed prior to the decision to travel, provided that the members of the group enter, stay and leave Cyprus as a group. Group visas may be issued to groups of between 5 and 50 people.
H. Employment in Cyprus
Non-EU nationals. Non-EU nationals (third-country nationals) can work and reside in Cyprus if they register and obtain the required permits. Eligible companies of foreign interests (International Business Companies, or IBCs) can register with the Civil Registry and Migration Department (CRMD) and follow a simplified pro cedure for employing third-country nationals in Cyprus.
Companies of foreign interests can qualify as IBCs and accord ingly apply for residence and employment permits for thirdcountry national employees if it can be proved that the majority of the company’s ultimate shareholders are foreigners and if certain other conditions are met.
Non-EU nationals with a monthly gross salary exceeding EUR2,000 per month who intend to work for an approved IBC can easily obtain a temporary resident permit allowing them to work in Cyprus for an initial period of up to two years that can be further extended.
For individuals who may become employees of IBCs with a monthly gross salary below EUR2,000 or may become employees of non-IBCs, an additional step in the process is required. They must obtain the consent of the labor office because such employees are considered to be unskilled labor and it has to be proved that the company cannot find properly qualified employ ees for that position who are Cypriots or EU residents residing in Cyprus. This may be a lengthy process with an uncertain out come depending on the specific job description. After the required documentation is submitted and the approval of the labor office is obtained, the same process for other third-country nationals is followed. The labor office usually provides its approval for one year, which can be extended or renewed up to a maximum of four years, but certain categories of employment such as agricultural laborers or cooks can be renewed without being subject to the maximum years’ limitation.
For individuals intending to be employed in Cyprus who need a visa to enter the country, an entry permit can be issued instead of a visa after the submission of the required documents. Within three months after the date of issuance of the entry permit, the employees must submit the remaining documents so that the CRMD can issue the residency card.
Temporary residence and work permits are issued approximately two to three weeks after the foreign national submits the required documents (this only applies for employees under the IBC regime; for employees under general employment procedures, the exami nation period can take up to four months). After the registration is completed, the employee is given a temporary residence permit, which is now in the form of a plastic card. The employee can travel in and out of Cyprus for the duration of the permit, provided that he or she is not outside Cyprus for a continuous period exceed ing three months. If the employee is absent from Cyprus for more than three continuous months, the permit is canceled.
Intra-corporate transfers. An intra-corporate transfer is consid ered to be a temporary secondment for occupational or training purposes of a third-country national who, at the time of applica tion for an intra-corporate transferee permit, meets all of the fol lowing criteria:
• He or she does not reside in an EU member state.
• He or she is transferred from an undertaking established in a non-EU member state to an entity belonging to the undertaking or to the same group of undertakings that is established in an EU member state.
• He or she is bound by a work contract prior to and during the transfer and has the right to mobility between host entities established in one or several second EU member states.
The procedures for entry, stay and work in Cyprus in the context of an intra-corporate transfer depend on whether Cyprus is the first or second EU member state.
In general, the application for an intra-corporate transferee per mit must be submitted to the authorities of the EU member state where the first stay takes place. If the first stay is not the longest, the application must be submitted to the authorities of the EU member state where the longest overall stay is to take place dur ing the transfer (first EU member state).
The application for an entry permit is submitted when the assign ee is abroad by the company in Cyprus (employer) at the central offices of the Civil Registry and Migration Department in Nicosia.
If the application is approved, an intra-corporate transferee resi dence permit is issued for the assignee, which is in a card format. Depending on the merits of each individual case, the maximum duration of the permit can be the following:
• Manager: three years or equal to the duration of the transfer, if shorter
• Specialist: three years or equal to the duration of the transfer, if shorter
• Trainee Employee: one year or equal to the duration of the transfer, if shorter
The inter-corporate transferee permit entitles the assignee to work in any company in Cyprus belonging to the same group of companies. On the permit, the main employer is indicated. The procedures for the entry, residence and work permit when Cyprus is considered as the second member state (that is, when the assignee will reside and work in Cyprus for a shorter period than in another EU member state) depend on the duration of the transfer. For the mobility to be possible, the assignee must hold a valid intra-corporate transferee permit issued by the first EU member state, covering the entire duration of the mobility.
If the mobility does not exceed 90 days within a period of 180 days, it is a short-term mobility. In this case, no permit is issued by the Cypriot authorities and the assignee having the intra-corporate transfer permit issued by the first EU member state may reside and work in Cyprus, if the conditions of the legislation are met. During the short-term mobility, the assignee can work in any company in Cyprus belonging to the same group of companies.
If the transfer of the assignee relates to a period exceeding 90 days, it is considered to be long-term mobility. In this case, the assignee must apply for and obtain a long-term mobility permit (card format) from Cyprus and meet the provisions of the legisla tion. The application for a long-term mobility permit may be submitted when the assignee is abroad or when he or she is in Cyprus for short-term mobility. It is submitted by the company in Cyprus (employer) at the central offices of the Civil Registry and Migration Department. The long-term mobility permit entitles the assignee to work for any company in Cyprus belonging to the same group of companies. The main employer in Cyprus appears on the permit.
EU nationals. Nationals from EU member states have the right to enter Cyprus with a valid EU passport or identification card without having to register on arrival. If they wish to stay for more than three months or begin employment, they must apply at the CRMD for the issuance of registration certificate (yellow slip) within one month after the expiration of the three-month period.
EU citizens and their family members can apply for the issuance of a permanent residence certificate after a five-year period of uninterrupted legal residence in Cyprus.
I. Permanent residence by investment
In accordance with the provisions of Regulation 6(2) of the Aliens and Immigration Regulations, the Minister of Interior, having notified the Council of Ministers, has decided to issue an immigration permit to third-country applicants, in cases of investments that meet the requirements of this policy.
The applicant must meet one of the investment criteria in Section 1.1 of the Regulation, as well as the quality criteria in Section 2. The money that will be used for the investment must be proven to have been transferred to Cyprus from abroad.
Investment criteria. Under Section 1.1, the applicant must invest at least EUR300,000 in one of the following investment categories:
• Investment in a house or apartment: Purchase of a house or apartment from a development company, which should concern a first sale of at least EUR300,000 (plus value-added tax).
• Investment in real estate (excluding houses and apartments): Purchase of other types of real estate such as offices, shops, hotels or related estate developments or a combination of these with a total value of EUR300,000. The purchase of an interest can be the result of a resale.
• Investment in a Cyprus company’s share capital, with business activities and personnel in Cyprus: Investment worth EUR300,000 in the share capital of a company registered in Cyprus, based in and operating in Cyprus and having a proven physical presence in Cyprus and employing at least five people.
• Investment in units of a Cyprus Investment Organization of Collective Investments (forms of Alternative Investment Fund with Unlimited Number of Persons [AIF], Alternative Investment Fund with Limited Number of Persons [AIFLNP] or Registered Alternative Investment Fund [RAIF]): Investment worth EUR300,000 in units of Cyprus Investment Organization Collective Investments.
Any alienation by the holder of the immigration permit of the investment made without its immediate replacement with another of the same or greater value that meets the conditions set out in the present procedure, will result in the cancellation of the immigration permit based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
Under Section 1.2 of the Regulation, the applicant should, in addition to the investment under Section 1.1, be able to prove that he or she has at his disposal a secure annual income of at least EUR30,000. This annual income increases by EUR5,000 for each dependent family member and EUR8,000 for each depen dent parent (of the applicant and/or his or her spouse). This income should derive from abroad and may include salaries or wages, pensions, dividends from shares, fixed deposits, rents and certain other types of income in cases in which the applicant chooses to invest as stated in the first item above. In calculating the total amount of income, the spouse’s income may also be taken into account.
In cases where the applicant chooses to invest as stated in the second, third and fourth items above, his or her total income or part of it may also come from sources coming from activities in Cyprus.
Quality criteria. Under Section 2 of the Regulation, the following are the quality criteria:
• The applicant and his or her spouse must submit a clean crimi nal record certificate from their country of residence, or from Cyprus in the case that they reside in Cyprus, and generally they should not be considered as a threat in any way to public order or public security in Cyprus.
• The applicant and his or her spouse must confirm that they do not intend to undertake any sort of employment in Cyprus with the exception of their employment as directors in a company in which they have chosen to invest under this policy.
• In cases in which the investment does not concern the compa ny’s share capital, the applicant and/or his or her spouse are allowed to be shareholders in companies registered in Cyprus, and the income from the dividends derived from such compa nies may not be considered as an obstacle for the purposes of obtaining the immigration permit. In such companies, they may also hold the position of an unpaid director.
• In cases in which the applicant chooses to invest as stated in the second, third and fourth items stated in Investment criteria, he or she should provide evidence regarding his or her accommo dation in Cyprus (for example, title of ownership or contract of sale and proof of payment for the property or rental agreement).
J. Family and personal considerations
Family members. For dependents of the employee of an IBC, an additional application form (MFR1) needs to be completed and filed for their registration under the family reunification section. In addition, the dependents of the employee may apply for employment in Cyprus but the procedure regarding the approval from the labor office (see Section G) needs to be followed. In this case, the approval from the labor office may be obtained more easily because the person who applies is dependent of an employee of an IBC.
For dependents of employees of non-IBCs, they may enter and reside in Cyprus as visitors. The family reunification section does not apply.
Driver’s permits Foreign nationals may drive legally in Cyprus with their home country driver’s license for one year unless they are resident in Cyprus, in which case they must exchange their driver’s license for a Cyprus driver’s license. To obtain a Cyprus driver’s license, applicants must take an oral exam on traffic laws and a practical driving test.
Cyprus has driver’s license reciprocity with most other countries.