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Second PassportsResidency By Investment in Cyprus: Government to launch new €250,000 Investor Program, - Lincoln Global Partners

May 15, 2024by Georgea Rios0

Residency By Investment in Cyprus is currently available under the country’s Golden Visa program, allowing foreign nationals to acquire residency by investing at least €300,000 into local real estate.

However, last week the government highlighted its plans to introduce a new residency program for high-income earners interested in investing in real estate in the country.

The main goal of the program would be to attract investors who can sustain themselves financially while in Cyprus.

The Proposal

The Cypriot Home Affairs Committee is currently evaluating the proposal which would allow foreign real estate investors to acquire residency under a lower real estate threshold than the existing program. Additionally, applicants must prove that they will not require support from the state and that they can sustain themselves and their families during their stay in Cyprus.

Parliament has gone back and forth regarding the real estate threshold, with some members suggesting a minimum investment of just €50,000. However, the most likely scenario would be an investment threshold of €250,000.

In summary, interested investors would be required to 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. 

Based on the current governmental debate, proving the capability to sustain one’s lifestyle without the state’s assistance, will be of essence to qualify. 

cyprus new residency program

Residency By Investment in Cyprus: The advantages

While it is not yet clear as of yet if this new program would replace the existing one, it would certainly make sense.

Reducing the minimum investment from 300,000 EUR to 250,000 would make the Cyprus Residency By Investment Program  Europe’s joint most cost-effective investor program, tied with Latvia which places the same minimum threshold on investors.

With Greece increasing its minimum investment thresholds throughout the country and Spain’s already expensive Golden Visa potentially coming to a close, this news will likely turn heads.

Unlike its counterparts, Cyprus is not yet part of the Schengen Area. However, the goal is for Cyprus to join the Schengen Area as early as this year. On top of that, Cyprus has just changed its citizenship law so that foreigners who live in the country will be able to apply for citizenship in Cyprus after just 3 and a half years of living in the country and proving basic knowledge of Greek. This means that Cyprus now provides the fastest naturalization pathway of any other European Union country, outside of Malta which allows Ultra- high net-worth investors to apply for the Citizenship By Direct Investment program to and request Citizenship 12 – 36 months after acquiring residency. 

The caveat is that like most European countries (outside of Portugal and Malta) investors will be expected to be physically present during this naturalization period. However, given Cyprus’s natural beauty, laidback way of life, tax incentives, and overall appeal as an expat destination, it can hardly be seen as a sacrifice.

European Golden Visas- Pathways to Citizenship 

 

Country Minimum Investment Golden Visa Minimum Stay Requirement for Citizenship Total Years for Citizenship*
Cyprus € 300,000 6 months per year (lawful residence) + 12 months of uninterrupted residence previous to the application.  3-4 years.
Malta(CBI) € 600,000 No Minimum Stay Required. 1-3 Years.
Greece € 250,000 6  months per year. 7 Years.
Portugal € 500,000 7 days per year. 5 Years.
Spain € 500,000 6 months per year. 10 Years.
Hungary € 250,000 6 months per year. 8 Years.
Latvia € 50,000 6 months per year. 10 Years.
Italy € 250,000 6 months per year. 10 Years.

*Years might be related to Permanent Residency. Consult one of our specialists to understand the entirity of the process.

Why Invest in Cyprus?

Cyprus is an island nation nestled in the eastern Mediterranean, boasting a rich tapestry of history, culture, and natural beauty. Not only is the country renowned for its stunning beaches, ancient ruins, and vibrant cities, but it also offers a thriving, resilient, and flexible real estate market, as demonstrated by the PwC’s thorough analysis in 2023.

For those seeking a market with high capital appreciation potential yet established enough to be considered somewhat secure, Cyprus might just be the perfect option. The district of Larnaca, for example, had an increase of 22% from 2022 to 2023 in transaction value terms, while Paphos recorded a 4% YoY growth rate.

Furthermore, foreign buyers are plentiful. They are extremely welcome 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 New Residency By opportunity will garner attention. In fact, in the avalanche of recent changes in the investment migration field, we will be keeping a close eye on Cyprus which is likely to become an increasingly popular destination for those seeking European residency.

Our team of specialists are at your disposal. Please contact us for a free consultation and to further discuss the most suitable options for your global freedom via the form below.

Contact Us for a Free Consultation

Georgea Rios

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