Residency By Investment in Cyprus is currently available under the country’s Golden Visa program, which allows foreign nationals to acquire residency by investing at least €300,000 in local real estate.
However, last week, the government announced plans to introduce a new residency program for high-income earners interested in investing in real estate in the country. The main goal is to attract investors who can financially sustain themselves while in Cyprus.
The Proposal
The Cypriot Home Affairs Committee is evaluating a proposal that would allow foreign real estate investors to acquire residency under a lower real estate threshold than the existing program. Applicants must prove they will not require state support and can sustain themselves and their families during their stay in Cyprus.
Parliament has debated the real estate threshold, with suggestions ranging from €50,000 to €250,000. The most likely scenario is an investment threshold of €250,000.
Interested investors must meet the following criteria:
- Income: Applicants must show a minimum of EUR 40,000 income per annum. An additional EUR 10,000 is required for each dependent.
- Investment: Invest in a property, either a house or apartment, starting at EUR 250,000.
Proving the capability to sustain one’s lifestyle without state assistance is essential to qualify.
Residency By Investment in Cyprus: The Advantages
While it is unclear if this new program will replace the existing one, reducing the minimum investment from EUR 300,000 to EUR 250,000 would make the Cyprus Residency By Investment Program Europe’s joint most cost-effective investor program, tied with Latvia.
With Greece increasing its minimum investment thresholds and Spain’s already expensive Golden Visa potentially coming to a close, this news is likely to turn heads.
Although Cyprus is not yet part of the Schengen Area, the goal is for Cyprus to join as early as this year. Cyprus has also changed its citizenship law, allowing foreigners to apply for citizenship after just three and a half years of living in the country and proving basic knowledge of Greek. This makes Cyprus the fastest naturalization pathway in the EU, outside of Malta.
Unlike most European countries (outside of Portugal and Malta), investors must be physically present during the naturalization period. However, given Cyprus’s natural beauty, laidback lifestyle, tax incentives, and overall appeal as an expat destination, this can hardly be seen as a sacrifice.
Why Invest in Cyprus?
Cyprus is an island nation in the eastern Mediterranean, boasting a rich history, culture, and natural beauty. Known for its stunning beaches, ancient ruins, and vibrant cities, Cyprus also offers a thriving real estate market.
For those seeking a market with high capital appreciation potential, Cyprus is an excellent option. The district of Larnaca, for example, saw a 22% increase in transaction value from 2022 to 2023, while Paphos recorded a 4% year-on-year growth rate.
Foreign buyers are plentiful and well-supported in Cyprus. In 2023, a total of 6,900 properties across Cyprus were purchased by internationals, an increase of 16% from 2022.
There is no doubt that this new Cyprus Residency By Investment opportunity will garner attention. With recent changes in the investment migration field, we will keep a close eye on Cyprus, which is likely to become an increasingly popular destination for those seeking European residency.
Our team of specialists at Unistone International is at your disposal. Please contact us for a free consultation to discuss the most suitable options for your global freedom via the form below.