Cyprus Grapples with Soaring Immigration Costs and Urgent Policy Adjustments

On October 17, 2024, Cypriot President Nicos Christodoulides expressed support for establishing more strategic agreements with third countries to address the immigration issue during an interview with European News. Cyprus, a Mediterranean island nation, has been under immense pressure in recent years in managing immigration.

Source: https://www.euronews.com/

The cost of immigration has skyrocketed year by year

In 2024, the cost of immigration management more than doubled from the previous year, jumping from €54 million to over €103 million. This sharp increase is primarily due to the continuous rise in the number of immigrants arriving on Cypriot shores. The influx of immigrants has led to new demands for accommodation, healthcare, welfare, and management, resulting in a significant increase in costs.

In 2021, the Ministry of Interior in Cyprus spent over €32 million, which rose to €42.95 million in 2022, reached €54.17 million by October 2023, and is projected to hit €103 million in 2024. This figure includes the costs of immigration service employees, civil servants hired in the field of immigration issues, and construction costs.

According to the Ministry of Finance, over the past three and a half years, the government’s total expenditure on immigration is estimated to have reached €465 million. Although the EU has provided financial assistance to Cyprus, national spending far exceeds this support. From 2021 to 2023, the EU provided Cyprus with €29 million for immigration management, while the Cypriot government’s immigration expenditure exceeded €465 million, more than 15 times the EU aid, indicating that national spending significantly outpaces EU support. Moreover, this forecast does not account for other significant expenses, such as welfare, housing, and legal aid services for immigrants.

The EU’s inadequacy in immigration policy has put Cyprus under tremendous pressure in immigration management, with costs becoming unsustainable. Before implementing reforms, Cyprus will continue to spend vast sums without hope of recouping these enormous costs. If the EU does not take action, Cyprus’s expenditures will become unmanageable.

Adjusting and tightening immigration policies are imminent

In April of this year, President Nicos Christodoulides of Cyprus spoke with European Commission President Ursula von der Leyen, stating that the country is in a severe crisis, with a significant increase in the number of immigrants arriving in Cyprus compared to the same period last year, and called for EU intervention in the escalating immigration issues in Cyprus.

Overall, Cyprus urgently needs to strengthen immigration control amidst soaring immigration costs, EU pressure, and considerations for immigration management.To control immigration costs and numbers, the Cypriot government is likely to take measures to control the number of immigrants through other channels and adjust immigration policies.

Cyprus has always been one of the popular destinations for European immigrants, with relatively relaxed policies attracting many overseas individuals, such as those through property investment immigration, work visas, or family reunification. Taking the property purchase permanent residency policy as an example, as immigration costs increase, the government may raise investment thresholds or more strictly review immigration applications, thereby reducing the number of immigrants through this channel.

Historical trends show that the property immigration policy has undergone multiple changes, from extended approval times, increased application fees, a cap of 700 people, and enhanced due diligence, to changes from three generations of immigration to two, not allowing parents to be included, each change reflecting the Cypriot government’s strict trend in immigration management.

Cyprus’s property immigration still has many advantages and attractions

Cyprus is a very livable European country, first and foremost, as a beautiful Mediterranean island with good natural environment and climate conditions. Secondly, Cyprus has a high level of education and healthcare.

It adopts the Commonwealth education system, which is in line with the British education system; it is also one of the European countries with the best medical security benefits, with a high overall medical level. Public hospitals and most private hospitals and clinics participate in the universal free medical security system, where medical treatment does not require queuing, and medical treatment is almost free of charge.

Then, Cyprus’s property immigration policy is relatively simple, with an investment of €300,000 in buying a house to obtain permanent residency status in one step, one person applies, and the whole family immigrates.

In addition, the property has independent perpetual ownership, which can be passed down through generations, and there is no inheritance and gift tax, making the investment cost-effective.

At present, immigration policies in EU countries are also continuously tightening, such as Greece raising investment thresholds and Spain intending to cancel golden visas. As one of the EU countries, Cyprus cannot stand alone. In addition, the Cypriot Audit Office has urged the Ministry of Interior to “seriously consider the possibility of abolishing the golden visa (property permanent residency) program,” indicating that there are policy changes or warnings of policy suspension in Cyprus’s immigration policy in the future.