Cyprus Proposes €250,000 Residency

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.

Reference

https://www.imidaily.com/