The Cyprus Government has come to the decision to implement radical changes to both the Pink Slip and Work Permit Schemes. Read on to find out more about these changes.

What is the Cyprus Pink Slip?

A Temporary Residency Permit under Visitor Status, also often referred to as a “Pink Slip”, confers to non-EU nationals the right to reside in Cyprus for a period of one (1) year as visitors. During this time, non-EU nationals may not engage in any form of employment in Cyprus.

Major changes have recently been introduced in the eligibility requirements for this type of residence permit with immediate effect. 

What Changes for Pink Slip applicants?

In a nutshell, the following changes have been introduced:

• A duly certified Clean Criminal Record Certificate is required from the Applicant’s Country of Origin or Residence
• The Applicant will need to demonstrate evidence that they have a stable income of at least €2,000 per month (or €24,000 per annum) from employment outside the Republic of Cyprus.
• The income Requirements amount increases if the Applicant will be joined by a spouse or a dependant minor.
• Alternatively, as part of an application for a Pink Slip for the first time, a cash transfer or deposit of €10,000 to a bank account in Cyprus (originating from a bank account outside of Cyprus) will also be accepted.
• By way of exception, the Applicant’s income may be generated from rent from property owned in Cyprus, or in the form of dividends from a company registered in Cyprus, provided that the Applicant does not receive any salary from his position in the company.

What about Family Members & Partners?

In addition to spouses and underage children of applicants, applications for a Temporary Residency Permit are now also accepted for the following categories:

• Adults, nationals of third countries, whose living expenses will be covered by their direct ascendants (parents) or their spouses (i) until they reach the age of 25 or (ii) up to 1 year from the completion of their studies.
• Dependents of Cypriot Citizens who have a proven permanent relationship and who wish to obtain a Residency Permit in Cyprus for the purpose of marriage. This type of temporary residence permit is issued for three (3) months and concerns foreign nationals who maintained a duly proven long-term relationship with a Cypriot citizen (at least one year).

Duration: Residence Permits for Dependents will be valid up until the expiration of the Residency Permit of the main applicant/sponsor.

Dependents of Holders of Other Types of Residency Permits

In relation to Third Country Nationals who may be family members or dependents of a Residency Permit Holder, other than a Visitor Permit, specific provisions have also been made for such cases. These vary depending on the type of Residency Permit provided to the Sponsor. (e.g. Family Members of an Employee of a Foreign Interest Company).

Changes to the Current Fast-Track Cyprus Work Permit Scheme

On 30/11/2022, the Council of Ministers approved substantial changes to the current Policy for the Registration of Companies in the Register of Foreign Interest Companies (for Companies eligible to employ non-EU nationals in Cyprus) which affects non-EU job seekers too.Until now, Cyprus Companies where the majority of their shares are owned by third-country nationals (non-EU) were eligible to apply and be granted a license to employ Third Country (non-EU nationals) using a simplified, fast-track mechanism without having to make an investment in Cyprus.

What changes for companies

The Decision modifies the eligibility criteria of foreign interest companies and specifically introduces a requirement to prove an initial investment in Cyprus of at least €200,000, which should be proven by presenting the appropriate certificates (e.g. bank statement at the time of deposit of the amount or proof of investment (purchase of office space and/or office equipment). The Decision enters into force on December 12, 2022.

Eligible Investments include: 

• A deposit of at least €200,000, supported by a Bank SWIFT or other similar document which proves a foreign direct investment by the ultimate beneficial owner, legally admitted to Cyprus from abroad. 
• In the case where the investment has not directly been made by the UBO, the relation of the investor to the UBO must be proven and documented.
• Other Relevant Business Investment (e.g. purchase of office space and/or office equipment).

Should you wish to find out more, contact our team at info@paraschou.com.cy