Cyprus is set to join the Schengen Area by 2025 as the political aspects of the matter have been resolved, and the technical requirements for accession will be finalized, according to President Nikos Christodoulides. This development is likely to positively impact Cyprus Golden Visa program, making it more attractive for investors seeking visa-free travel to most European countries.

 

Along with the Schengen accession, Cyprus is also making another vital change to the Golden Visa program. President Christodoulides has revealed that the United States has almost put in place measures that will allow Cypriot citizens to travel without a visa. This milestone will further enhance the program’s attractiveness and provide investors with more freedom of movement and business prospects.

 

In this article, we will highlight the implications of the expected measure on the Golden Visa program, and delve into the investment options available, and the requirements for obtaining the residency permit.

 

EU Membership Vs. Schengen Area

To understand the importance of Cyprus joining the Schengen Area, it is crucial to differentiate between the European Union (EU)[1] and the Schengen Area. The EU is a political and economic union of 27 countries whose main objective is harmonizing policies and economic cooperation. In contrast, the Schengen Zone, which comprises 29 countries, is an arrangement that involves several European nations that have removed their internal border controls so that people can freely move from one country to another. The two entities ensure the integration and cooperation of the economics of Europe. They enhance the mobility of factors of production, goods and services, capital, and labor to boost economic stability and growth. The EU is a political and economic union, while the Schengen Zone is solely concerned with removing border controls.

 

Benefits of Joining Schengen Area

The Schengen Area[2] permits more than 400 million people to move freely between member countries without having to pass through border controls. It also offers important economic advantages to the citizens and enterprises of the participating countries, thus strengthening the foundation of the European Union and its internal market.

 

The primary aim of the Schengen Area is to enhance security through the coordination of police forces, customs services, and external border control among member states. In light of the removal of internal border checks, new security standards and collaborative mechanisms have been established to ensure a high level of protection for Schengen citizens.

 

What does this measure mean to Cyprus?

Cyprus’s accession to the Schengen area in 2025 will, impact the Golden Visa program significantly, opening myriad opportunities for investors looking to obtain the country’s residency permit. It will bring crucial benefits including:

 

1. Enhanced Visa-Free Travel

Currently, Cyprus residency holders face certain travel restrictions. While they can freely visit or reside in Cyprus, they still require a visa to travel to other EU or Schengen countries. However, joining the Schengen area will allow Cyprus Golden Visa (residency permit) holders to travel freely across the 27 Schengen countries for up to 90 days every 180 days without needing other Schengen visas to move around in Europe. They can take advantage of the single market for goods and services and the free movement of people in the European Union. This would greatly enhance the appeal of the program for non-EU investors interested in European mobility.

 

2. Growth in Tourism and Real Estate Investment

Cyprus’s Schengen membership is likely to boost tourism and make the country more attractive for long-term residents. Investors will seek eligible properties to qualify for residence, driving up demand for real estate, especially in the most popular areas like Limassol, Paphos, and Nicosia. Therefore, the market will be more attractive for property investors, as it will have lucrative rental opportunities from the increased tourism.

 

3. Increased Demand for Cyprus Golden Visa

As a member of the Schengen Area, the Cyprus Golden Visa program would become more competitive with programs such as Greece, Portugal, and Spain, which already offer Schengen access. Investors focusing on visa-free travel across Europe may consider Cyprus’s real estate investment thresholds more attractive.

 

4. Stronger Business Environment

Cyprus’s strategic location, business-friendly tax policies, and access to the EU market make it a good choice for international companies. Its expected membership to the Schengen Area will increase its potential as a trade and investment hub by facilitating the ease of movement of people through the European borders.

 

5. Easier Access for EU and Non-EU Investors

The Schengen Area membership will facilitate easier travel and investment for non-EU investors, therefore making Cyprus even more attractive for Foreign Direct Investment. The freedom of movement that comes with the ability to travel across Europe without having to get other visas will be a great advantage for international businesses, mainly the technology, finance, and shipping industries. As the global trend of remote work and digital freedom continues to rise, Cyprus is perfectly positioned to capitalize on this opportunity and establish itself as a leading destination for digital nomads in Europe.

 

New Era

Cyprus is on the verge of a breakthrough to a new era as it moves closer to Schengen membership. The expected advantages of membership in the Schengen Area go beyond the advantages of free individual mobility and include generally higher rates of economic growth and a more attractive investment environment. However, Schengen accession requires rigorous security and border controls, which could lead to stronger due diligence on Golden Visa applicants, more scrutiny regarding the source of funds and applicants’ backgrounds, and potential processing delays due to increased security measures.

 

Cyprus Golden Visa

Investment Options 

To qualify for Cyprus Golden Visa, investors must:

• Buy a residential property with a minimum value of €300,000. To successfully secure the property, the applicant must prove the funds have been transferred to the country from abroad. They should prove that the money hasn’t been borrowed from within the Republic. Additionally, the funds need to be deposited in a Cypriot financial institution and must be available in the vendor’s bank account.
• Purchase a commercial property, such as an office, shop, hotel, or similar development, with a minimum value of €300,000. The property purchased can be resold.

 

It is worth noting that real estate properties must be new, not resale, and purchased directly from a real estate developer. The main applicant must have an annual income of at least €30,000. They should have proof of extra annual income of €5,000 for each dependent child or parent as part of the same application. A visit to Cyprus once every 2 years to retain permanent residency status is required.

 

Eligibility Criteria

To qualify for a Cyprus Golden Visa, an applicant must be a non-EU, non-EEA, or non-Swiss national who is over the age of 18. He should have a clean criminal record certificate and prove that the money belongs to him and the source of the money is from abroad. Applicants are also entitled to invest at least €300,000 in residential real estate property or by buying up to 2 brand new houses or apartments from any developer with a combined price of at least €300,000. Family members can apply with the main applicant, including spouse, children under 18, and dependents under the age of 25.

Applying for residency through an investment program in Cyprus can only be done through a government-approved agent. To start the process, applicants must sign a service agreement with an authorized agent. The latter will provide advice assistance and prepare documents and government forms. The authorized agent will submit a complete application to the government of Cyprus on behalf of the applicant and his/her spouse. At this stage, the government issues permanent residency permits for the primary applicant and spouse, who will travel to Cyprus to receive the residency permits.

 

Step-by-Step Guide to the Cyprus Golden Visa

Applicants must fulfill certain conditions:

 

• Step 1: Choose the type of investment that aligns with his goals and meets the criteria for obtaining a residency in Cyprus.
• Step 2: Make the required investments and submit the documents, ensuring that €300,000 has been invested as part of the process.
• Step 3: Prepare the documents and gather all the necessary documentation to support the application.
• Step 4: Complete the application form, providing accurate information to avoid any delays in the process.
• Step 5: Open a local bank account in Cyprus to manage the investment and other financial transactions.
• Step 6: Submit the completed application along with the required documents to the Civil Registry and Migration Department.
• Step 7: Pay the application fee, and wait for the official approval.
• Step 8: After getting the application approved, the applicant will receive a letter confirming the investment option chosen.
• Step 9: The applicant should travel to Cyprus to complete the biometrics and obtain a permanent residence permit, which is valid for 10 years.

 

Documents Required

The following documents are needed:

• Completed application form
• Valid passport
• Proof of investment and payment
• Bank statements showing income
• Proof of fund sources
• Criminal record check from the country of residence with a certified translation to English for applicants 16 years and above
• Passport-sized photos for each applicant
• Health insurance certificates covering all family members
• Marriage certificate (if applicable)
• Children’s birth certificates (if applicable)
• Statement of Intent indicating that the applicant does not intend to undertake any employment in Cyprus, except as a Director of a company.

All documents must be legalized and translated into English or Cypriot language by a certified translator. The documents can be legalized by the Cyprus Consulate or by the Apostille of the Hague Convention.

Cyprus Golden Visa holders who hold the Golden Visa for seven years are eligible for citizenship application, provided that they hold the investment and stayed in Cyprus for a consistent year before the application.

 

Benefits of a Cyprus residence permit

The Cyprus Residency program has a lot of benefits to offer. Its holders can travel without a visa to more than 170 countries and can have access to top-rated universities with lower EU tuition fees, as well as world-class healthcare services. Investors in Cyprus benefit from an extremely favorable tax regime, where they are not taxed on their worldwide income or capital gains.

The Cypriot residency is granted within two months, it is valid for life and can be passed down to dependents and spouses. Holders of Cyprus permanent residence benefit from a cheap cost of living that is among the lowest in Europe and very competitive residential property prices. Cyprus provides expats and their families a privileged lifestyle in a secure and dynamic location, perfectly mixing traditional and contemporary aspects while giving the ideal combination to enjoy life and a fantastic work-life balance.

 

 

For further updates regarding Cyprus’s Golden Visa program and the requirements to obtain a residency permit, please contact us here.

 

[1] https://www.axa-schengen.com/en/visa/schengen-area/difference-europe-schengen-eea#:~:text=What%20is%20the%20difference%20between,border%20controls%20for%20free%20movement.

[2] https://www.consilium.europa.eu/en/policies/schengen-area/#:~:text=the%20Schengen%20area.-,What%20are%20the%20benefits%20of%20Schengen%3F,without%20going%20through%20border%20controls.