Cyprus is preparing to tighten its residence‑by‑investment (golden visa) scheme ahead of its planned entry into the Schengen Area. Deputy Minister of Migration and International Protection Nicholas Ioannides told a parliamentary audit committee that the government will review roughly 12,000 permits issued since 2013 to ensure they still meet the programme’s conditions, and that new investment criteria are being drafted.
Current programme rules
- Minimum investment: €300,000 (≈ US$342,000) in one of four asset types – new residential property, commercial property, shares in a Cypriot company with at least five employees, or units in a Cypriot investment fund.
- Holders must retain the investment and visit Cyprus at least once every two years.
- The scheme grants permanent residence, not citizenship; Cyprus ended its citizenship‑by‑investment programme in November 2020.
Proposed changes
- No official text of the proposals has been released. Draft options include expanding eligible investment sectors to education, defence and innovation.
- A higher investment threshold is being considered, possibly modelled on Greece’s tiered system introduced in September 2024:
- €800,000 (≈ US$911,000) in high‑demand regions (Attica, Thessaloniki, Mykonos, Santorini, islands with >3,100 residents).
- €400,000 (≈ US$456,000) elsewhere.
- Greater emphasis may be placed on directing capital toward innovation, education and strategic regional projects rather than saturated residential real estate.
- Strengthened due‑diligence, ongoing monitoring and stricter anti‑money‑laundering checks are expected.
Legislative and administrative context
- April 2024: The government argued that only the executive should set programme criteria. An opposition bill from AKEL would require formal regulations within three months, otherwise ending the fast‑track route.
- June 17 2024: Responsibility for the Migration Department shifted from the Interior Ministry to the Deputy Ministry of Migration.
- September 3 2024: Interior Minister Constantinos Ioannou presented a draft restricting non‑EU nationals’ purchase of agricultural land, land near the cease‑fire line and critical infrastructure, and limiting plot and home sizes. It is unclear whether these limits will apply to golden‑visa purchases.
- September 24 2024 hearing: Ioannides confirmed the review of the 12,000 permits and the intention to tighten the scheme before Schengen accession.
Discrepancies in permit counts
- April 2024 data: 7,088 golden visas issued since 2013, all still valid.
- Finance ministry letter (2025): 28,660 permits (including family members) from 14,646 applications, with 1,209 rejections and 1,248 pending, leaving 12,189 active applications—close to the 12,000 figure cited by Ioannides. The basis for the 12,000 count was not clarified.
Schengen accession requirements
- Cyprus received a positive readiness assessment from the European Commission in July 2024.
- Formal discussion among Schengen states began on September 15 2024; Greece, Italy and Spain supported accession, while the Netherlands and Austria abstained.
- Brussels has asked Cyprus to codify its Green Line crossing procedures in EU law and to upgrade checks at the two British base crossings.
- Opposition MPs warn that Schengen membership could attract golden‑visa applicants primarily seeking EU mobility.
Enforcement challenges
- An audit report (April 2025) identified 289,599 non‑EU nationals who entered Cyprus between 2014 and 2023 without a recorded departure as of 31 March 2024.
- Ioannides expects a new entry‑to‑exit tracking system to become operational in March 2025, improving enforcement of the biennial visit requirement.
Implications for investors
Prospective applicants should anticipate higher investment thresholds, stricter due‑diligence, and possible restrictions on property purchases. Those who have already signed purchase agreements or paid deposits before any amendment may retain the previous, more favourable terms, but the final impact will depend on the yet‑unpublished regulations.
Source article: www.imidaily.com
