The Category F Immigration Permit is a permanent residence permit for financially independent third-country nationals who have a secured annual income from abroad. It is designed for retirees, pensioners, and other individuals who wish to live in Cyprus without engaging in any employment, business, or profession. Income must derive entirely from sources outside Cyprus, such as pensions, dividends, interest on deposits, or rental income from property abroad. The permit grants permanent residence of unlimited validity and is one of the lowest passive income residence requirements in Europe. Since June 2024, the Migration Department operates under the newly established Deputy Ministry of Migration and International Protection.
The permit grants permanent residence of unlimited validity. There is no need to renew the residence status itself. The physical residence card expires after 10 years and must be replaced through an administrative renewal process.
Spouses and children under 18 years of age may be included as dependants. Each dependant requires an additional EUR 4,613 in annual income from abroad. Dependants must provide their own passport copies, birth or marriage certificates, and criminal record certificates. Health insurance must cover all family members.
From 1 January 2026, Cyprus has no tax on income up to EUR 22,000 per year (increased from EUR 19,500), with progressive rates of 20% (EUR 22,001-32,000), 25% (EUR 32,001-42,000), 30% (EUR 42,001-72,000), and 35% (above EUR 72,000).
Foreign pension income is particularly relevant for Category F retirees, whose income derives from abroad. A Cyprus tax resident may elect, separately for each tax year, between two regimes: adding the foreign pension to their other income and paying the normal progressive rates, or having the pension taxed on its own at a flat 5% on the amount exceeding an exempt threshold. Effective 1 January 2026, that exempt threshold rose from EUR 3,420 to EUR 5,000 per year, so the first EUR 5,000 of foreign pension is tax-free and the balance is taxed at 5% under the flat-rate election. Because the choice is made annually, pensioners can pick whichever regime yields the lower liability — for example, a EUR 50,000 pension would leave EUR 5,000 exempt and EUR 45,000 taxed at 5% (EUR 2,250), while those with modest income may prefer the progressive scale and its EUR 22,000 tax-free band.
Non-domiciled tax residents (applicable to all new arrivals for the first 17 years) are exempt from Special Defence Contribution (SDC) on dividends, interest, and rental income. For domiciled individuals, SDC on dividends from profits earned after 1 January 2026 has been reduced from 17% to 5%. Tax residency is established by spending 183 or more days per year in Cyprus, or through the 60-day rule for those who maintain a permanent home and economic ties in Cyprus. Holders may also register with Cyprus's General Health System (GESY/GHS) once they establish habitual residence.
Applications are submitted in person or via an authorised legal representative at the Migration Department offices in Nicosia. The completed MIP1 form must be accompanied by all supporting documents and the EUR 500 application fee (plus EUR 70 if an Aliens Registration Certificate is required). All documents must be officially translated into Greek or English and duly certified or apostilled. Biometric data is captured during submission. No personal interview is required unless specifically requested by the authorities. Processing takes approximately 12-18 months for standard applications, though as of early 2026 the department is processing a significant backlog dating to 2019-2020, meaning actual wait times may be longer.
An accelerated track is available for applicants who meet higher thresholds: a secured annual income of at least EUR 30,000 (plus EUR 5,000 per dependant), purchase of property worth at least EUR 300,000 (with proof of at least EUR 200,000 paid), and a bank deposit of EUR 30,000 pledged for three years. This fast-track targets a processing time of approximately 3 months.
Holders must not engage in any business, trade, or profession in Cyprus, though they may hold shares in a Cypriot company and receive dividend income from it. The permit is automatically cancelled if the holder is absent from Cyprus for two consecutive years, obtains permanent residence in another country, or fails to establish a place of residence within one year. The permit is valid only for the Republic of Cyprus and does not currently confer visa-free travel to other EU or Schengen area countries; if Cyprus is admitted to Schengen, holders would gain visa-free Schengen travel for up to 90 days in any 180-day period.