Introduction

Cyprus is planning to amend the requirements for obtaining residency permits by foreigners. The proposed changes would allow residency permits to be obtained based on investments in property valued at €250,000 and an annual income of €40,000.

Details of the Changes

According to the new draft law, foreign nationals wishing to obtain residency in Cyprus must meet the following requirements:

1. Absence of Employment: The foreigner must not engage in any employment or economic activity within Cyprus.

2. Annual Income: Have an insured annual income of at least €40,000 (an additional €10,000 for each family member).

3. Property Ownership: Own property in Cyprus worth at least €250,000.

This draft law is currently being discussed in the Committee on Internal Affairs of the House of Representatives.

Various Viewpoints

According to information from open sources, some interested parties propose to lower the threshold for property investments to €150,000. They argue that this would simplify the process of purchasing property on the secondary market.

However, others express concerns that a lower threshold for investments may lead to an increase in demand for property and, consequently, to rising prices, which could negatively affect local buyers.

Current Conditions

Currently, ownership of property in Cyprus, regardless of its value, entitles one to apply for a multiple-entry national visa and temporary residency. The same applies to long-term rental of property on the island. However, with temporary residency, one is not allowed to work in Cyprus.

When purchasing real estate worth more than €300,000, a foreigner can immediately apply for permanent residency.

Cyprus is also open to those who do not intend to seek employment on the island but plan to live on income from abroad or from foreign business. With a confirmed annual income of at least €50,000 for the main applicant, €15,000 for the spouse, and €10,000 for each child, one can apply for permanent residency.