Meet with Globevisa lawyer: Is Cyprus Planning to Introduce a €250,000 Property Investment Immigration Channel?

Recently, the Cyprus Parliament has been reviewing the 2022 amendment to the “Immigration and Foreign Nationals (Amendment) Regulations,” aimed at introducing an alternative immigration route for economically independent foreign nationals from outside the European Union. By purchasing property in Cyprus worth €250,000 and proving an annual income of at least €40,000, individuals can obtain permanent residency in Cyprus.

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According to the proposed legislation, applicants must meet the following conditions:

1. Have an annual income of €40,000, with an additional €10,000 annual income required for each additional family member.

2. Invest in a private residence worth at least €250,000 (such residence, whether a villa or an apartment, should meet the residential needs of the applicant and their family).

Natalie, Globevisa Cyprus Program Manager, and Mr. Stelios, the exclusive cooperating immigration lawyer at Globevisa, held in-depth online discussions regarding this new proposal, exploring the feasibility of the new law and its impact on the current Channel 6(2) investment of €300,000 for property purchase.

Natalie: “Is this a completely new immigration program? What are the chances of this plan being approved?”

Stelios: “This proposal has been circulating for two years now, and the draft law is currently being discussed. It’s likely a revision of the existing Cat. F permanent residency law, which previously didn’t mandate property purchase, allowing applicants to buy or rent. There’s debate within the government regarding the investment threshold. Some suggest lowering it to €150,000 and broadening property options, while others fear it might inflate prices, making it harder for locals to buy homes. With Cyprus already having a residency channel requiring €300,000 investment, conflicts with the new plan might hinder its approval.”

Natalie: “If this is indeed the original Cat. F residency channel, as far as we know, no cases have been approved officially since 2021, causing concerns among many applicants due to prolonged processing times!”

Stelios: “Correct. The low threshold led to a surge in applications, causing a backlog. The government recognized flaws compared to the 6(2) residency channel, which requires €300,000 investment, and suspended Cat. F processing. The government is considering measures to improve Cat. F or abolish it. Since the start of the year, the immigration department has been training staff to improve efficiency and ensure timely results.”

Natalie: “Does this new plan contradict EU pressure on Golden Visa programs in Europe?”

Stelios: “Indeed. We hope the new plan, with its lower threshold, is implemented. However, its approval remains uncertain due to continuous EU tightening. It’s unclear how long Cyprus’s property investment residency can continue. Past changes suggest abrupt shifts, making seizing the current policy crucial.”

Given the lack of clarity regarding the new plan, the current €300,000 property investment residency program has been relatively stable in terms of policy and has consistently had approval cases. It is considered more prudent and reliable. With Greece increasing its property investment threshold from €250,000 to €500,000 and further to €800,000 in August this year, the investment cost for applicants will significantly increase. The Cyprus €300,000 property investment residency program will become a one-step solution for obtaining permanent residency status with a low investment threshold. Additionally, Cyprus, being a country with very high English proficiency in Europe, holds great appeal for applicants looking to settle down.

Let’s take a final look at the residency application conditions in Cyprus:

Cyprus residency can be obtained by investing at least €300,000 in property, which can be a villa or an apartment, qualifying for a European permanent residency card. Applicants have no age, language, or medical requirements, and there is no need to reside locally, making it a fast-track residency program for family immigration through property investment. All properties in Cyprus are newly renovated and ready to move in, with no property tax or inheritance tax, offering permanent ownership for generations to come. Families also enjoy free public education and universal healthcare.

It is advisable for investors to take advantage of the current policy and expedite the application process, especially considering the uncertain future of new policies and the overall tightening trend of golden residency programs in Europe.