Cyprus Proposes €250,000 Residency
Program for Financially Independent People
April 29, 2024 Charles Savva club, cyprus, europe, golden visa, policy update, residence by investment
Charles Savva
Cyprus
The Cypriot government has rolled out a new legislative proposal targeting
foreign nationals seeking to obtain a Cypriot residency permit. Parliament is
reviewing the “Aliens and Immigration (Amendment) Regulations of 2022,”
aiming to introduce an alternative immigration route for individuals from third
countries.This initiative focuses on those who can financially support themselves without
working locally in Cyprus.
Overview of the Proposed Immigration Permit
The latest amendment, under scrutiny by the parliamentary Home Affairs
Committee, outlines that foreign nationals from outside the EU who have an
income of at least €40,000 and are ready to invest a minimum of €250,000 in
residential property might qualify for an immigration permit.
This permit would enable them and their families to live in Cyprus, providing a
direct path to Cypriot permanent residency. Moreover, because of the financial
requirements, those who qualify for this new investment-based residency would
also, by extension, qualify for Cyprus' new fast-track to naturalization, which
may result in citizenship following as little as 3.5 years of residency on the island.
Key Requirements and Financial Criteria
The criteria are straightforward. Under the proposed legislation, applicants must:
Have a confirmed income of €40,000 annually, with an additional €10,000
required for each family member.
Invest in private housing valued at at least €250,000. Such housing, whether
a house or an apartment, should fulfill the applicant's and their family's
living requirements.
Debate over Investment Thresholds
Discussion within the Home Affairs Committee has raised issues regarding the
required property's investment threshold. Some members suggest lowering the
minimum investment from €250,000 to €150,000, making the program more
accessible and allowing for a broader range of property choices, including new
and existing homes.
However, this suggestion faces resistance, as critics argue it might inflate
property demand and prices, making it tougher for locals to buy homes. This is
similar to what we saw transpire in Portugal in recent years. On the other hand,
Cyprus already has a residence-by-property-investment scheme, the minimum
investment of which is EUR 300,000 and which has not, as far as has been
reported, led to a local housing crisis.
Another question about the minimum threshold is how the proposed new
program would differ from or compete with the existing EUR 300,000 golden
visa, which does not have a minimum income requirement.
The regulations stress that potential immigrants must prove their financial
solidity, ensuring they will not depend financially on state support. The ongoing
debates may significantly affect Cyprus's real estate market and broader
economic landscape, ultimately influencing its appeal as a destination for foreign
investment and residency.
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