Updated
GL-I-06
Glossary · Cyprus PR
Investment in a Cyprus fund - option D for Cyprus PR
Buying €300,000 of units in a Cyprus investment fund for PR
01 / In 30 seconds
The short answer
- What it is
- Buying €300,000 of units in a Cyprus investment fund for PR
- Which funds
- Alternative investment funds of the AIF, AIFLNP or RAIF type set up in Cyprus
- Where the money goes
- The fund invests in Cyprus
- Housing
- Needed separately: owned, bought or rented in Cyprus
02 / In plain words
What Investment in a Cyprus fund means
Investment in units of a Cyprus investment fund is option D of the 4 investment options for Cyprus PR under the Migration Department criteria.
Units of three types of Cyprus alternative investment funds qualify: an AIF, an AIF with a limited number of persons (AIFLNP) and a registered alternative investment fund (RAIF). The fund's money must be invested in Cyprus. No VAT applies to buying units.
This option suits people who do not want to manage a flat or a business themselves. Returns and risks depend on the fund's strategy, so the fund is checked before buying as carefully as a property. The family still needs housing in Cyprus.
A simple example
A client does not want to let a flat or handle repairs. She buys €300,000 of units in a Cyprus RAIF from her account abroad and rents a house in Paphos. With the fund's confirmation we file the PR application.
When option D fits
- You do not want to deal with property
- You want a passive investment
- You want to spread risk across the fund's assets
- You accept market risk
- Annual proof of the investment for PR
03 / What it covers
What option D requires
Fund
- AIF
- AIFLNP
- RAIF
Money
- €300,000 in units
- Transfer from abroad
- Fund invests in Cyprus
Checks
- Fund status in Cyprus
- Strategy and risks
- Exit terms
Documents
- Proof of unit purchase
- Proof of transfer
- Housing in Cyprus
04 / How it works
How to invest in a fund
Choosing the fund
We check the fund type, its status in Cyprus and where it invests.
Money route
We prepare the €300,000 transfer from abroad and the source of funds documents.
Buying units
You sign the fund documents and receive confirmation of your units.
Housing
We find housing for the family, to buy or to rent.
Filing
We gather the fund documents and file the PR application.
05 / Key facts
What matters
01Amount
€300,000
The same bar as for property and companies. No VAT on units and no Land Registry fees.
02Fund types
AIF, AIFLNP, RAIF
Only these Cyprus alternative funds qualify. A foreign fund or an ordinary brokerage account will not count.
03Risk
Market risk
Unit values can change. We review the strategy, reports and exit terms before you buy.
04Every year
Proof
The Migration Department expects an annual fund statement showing the €300,000 of units is still yours.
Common mistakes
Buying units of a foreign fund
You need a Cyprus AIF, AIFLNP or RAIF that invests in Cyprus.
Selling the units after getting the card
The investment must be kept while you hold PR. Selling without a replacement risks losing the status.
Not checking the exit terms
Study the redemption terms in advance: money in a fund can be locked for years.
06 / Expert advice
How to prepare in advance
Ask the fund for documents on its status in Cyprus, its strategy and its redemption terms. We will review them before any money is sent.
What we do for you. We check whether the fund fits option D and prepare the investment documents for the Migration Department.
Robert HaasHead of Company Formation
07 / Questions
Frequently asked questions
Yes. Option D is buying at least €300,000 of units in a Cyprus AIF, AIFLNP or RAIF.
No, the fund must be a Cyprus fund that invests in Cyprus.
No.
No. It is a market investment and unit values can change.
Yes, owned or rented. You do not have to buy it.
That the €300,000 of fund units still belongs to you, plus your health insurance.
Cyprus PR glossary
- Cyprus PR programme →
- Cyprus PR
- ARC (Cyprus alien registration)
- Form MIP2
- Cyprus residence card
- Cyprus PR criteria
- Cyprus Migration Department
- Secure annual income
- Dependent students 18-25
- Cyprus Department of Lands and Surveys
- Title deed in Cyprus
- DLS search certificate
- Encumbrance in Cyprus
- Separate title deed in Cyprus
- Developer mortgage in Cyprus
- Reservation agreement in Cyprus
- Sale contract in Cyprus
- Contract deposit in Cyprus
- Specific performance law
- Direct title issue to the buyer
- Cyprus transfer fees
- Foreign buyer permit (Cap. 109)
- Planning permit
- Building permit
- Certificate of final approval
- Division permit
- First sale from a developer
- Resale property in Cyprus
- 18-month new building rule
- Commercial property for Cyprus PR
- Short-term rental licence
- VAT on Cyprus property
- Reduced 5% VAT on housing
- Cyprus tax identification code
- Cyprus stamp duty
- Cyprus capital gains tax
- Special defence contribution
- Cyprus non-dom status
- GESY health contribution
- Cyprus tax residency
- Cyprus income tax
- Cyprus PR government fees
- Source of funds for Cyprus PR
- Cyprus bank account
- Family members in Cyprus PR
- Apostille for Cyprus
- Certifying officer in Cyprus
- Citizen Service Centre (KEP)
- Sworn translator in Cyprus
- Police clearance for Cyprus
- Plan A health insurance
- Power of attorney for Cyprus
- Income affidavit
- Non-employment declaration
- Medical tests for Cyprus PR
- Cyprus citizenship by residence
- All terms →
INITIAL ASSESSMENT
Tell us what outcome your family needs
We will design a solution for your case, choose the country and the right status, and take the whole process through to the result.
