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Cyprus
April 1, 2024
5 min

Pros and Cons of Cyprus Golden Visa

Kenley Henderson

The Cyprus Golden Visa program has gained popularity recently as it provides non-EU nationals with Cyprus permanent residency in exchange for a €300,000 investment.

Wealthy individuals are increasingly exploring avenues to safeguard their futures and broaden their prospects as the world becomes more connected. One such option is the Cyprus Golden Visa program, offering a myriad of benefits and some disadvantages that savvy investors must consider.

The article will delve into the intricacies of this program by exploring its eligibility requirements, types of investments accepted, and highlighting both the advantages and drawbacks associated with obtaining a golden visa in Cyprus.

Pros and Cons of Cyprus Golden Visa

Pros and Cons of Cyprus Golden Visa

Overview of the Cyprus Golden Visa Program

The Cyprus residency-by-investment initiative is an excellent opportunity for non-EU/EEA citizens and their families to obtain legal permanent residency in Europe by investing in the country’s economy. There are several eligibility requirements that you need to meet.

Eligibility requirements for applicants:

  • the investor is over 18 years old;

  • the annual income of at least €50,000, plus €5,000 per spouse and child;

  • proof of no criminal record;

  • Investors must be from a Non-European country nation.

Who can be included in the application for a Cyprus Golden Visa:

  • an investor with a legal income;

  • their spouse or partner;

  • children under 18;

  • children under 25, unmarried and financially dependent;

  • children of any age with physical disabilities;

A Cyprus residence permit can be obtained for a minimum of 3 months. One may live in Cyprus and apply for citizenship after 5 years of residence thanks to the PR status, which is permanent.

The Cyprus Golden Visa Program is the quickest route to permanent residency when compared to naturalisation, family reunion, or marriage.

The minimum investment required for the Cyprus Golden Visa program for each option is €300,000, making it an accessible entry point. It is quite profitable compared to Malta Permanent Residence Programme, with a minimal investment of about €700,000 for a permanent residence permit.

Types of investments accepted:

  1. Purchase of residential real estate.

  2. Purchase of commercial property.

  3. Buying shares in a Cypriot company.

  4. Purchase of securities.

The whole Cyprus golden visa path can be arranged without visiting an island. After the application is approved, the applicants have to fly to the country to submit the biometrics.

When the residence card has been received, applicants may come to Cyprus whenever they want or move to the country.

To keep the permanent residence, you must visit the island at least once every two years.

Cyprus Golden Visa Features

3 months

Processing time of obtaining Cyprus permanent residency

€300,000

Minimal investment costs regardless of the number of family members

4 investment options

Are offered to investors participating in Cyprus golden visa program

5% per annum

Real estate rental income an investor can get if choosing a real estate investment option

5 years

An investor should live in Cyprus with a golden visa to apply for citizenship

6 Advantages of Living in Cyprus

Cyprus is situated in the eastern part of the Mediterranean and connects Europe, Asia and Africa. Since ancient times it was a link between Egyptians, Assyrians, Arabs, Greek and Romans. Therefore the region has a rich history and impact of the greatest civilisations.

1. Most Cypriot residents speak English, which makes it easier for expats to fit into society and run businesses smoothly and hassle-free.

2. Cyprus enjoys a pleasant Mediterranean climate of long dry summers and mild winters. The island has one of the warmest climates in the Mediterranean part of the European Union.

3. Cyprus’s marine and coastal environments are evaluated as Good-High, under the European Environment Agency dara. Also, 74 Cypriot beaches and 2 marinas have been granted a Blue Flag for the excellent quality of bathing waters.

4. Cyprus has a modern and effective healthcare system. The average life expectancy in Cyprus is 81 years for men and 85 years for women.

5. Cyprus is a hub for quality education. The number of foreigners studying in the country has tripled in the last four years.

6. The prospect of getting an EU passport. After 5 years of obtaining PR, you can apply for a Cyprus passport.

Cyprus permanent residence benefits

Daily temperatures in Cyprus during July and August vary between 23 and 31° C. In January, the daily temperature is 10° C, while the average minimum is 5° C

3 Disadvantages of Cyprus Golden Visa

1. Limited eligible dependent family members. Changes in the program have limited the number of eligible dependents that can be included in an application.

From May 2023 onwards, parents of investors or their spouses can not be added to the application.

2. No right to work in Cyprus. Those who obtain Cyprus residence by investment do not get permission to work in the country. Yet, if they get Cypriot citizenship afterwards, they acquire the right to employment. Moreover, Cyprus citizens can find jobs not only in Cyprus but in other EU countries, too.

3. Cyprus is not in the Schengen Area, so holders of Cyprus residence permits have to apply for visas to travel to Schengen. Yet, Cyprus has started the process of acquiring membership in Schengen. It may make Schengen states a visa-free destination for investors with Cyprus permanent residency.

There are several investment routes that can open up the possibility of travelling freely to Schengen right now.

Investment Programs in Countries with Access to Schengen Area

Investment program

Costs

Term of obtaining

Citizenship

🇲🇹 Malta citizenship for exceptional services by direct investment.

€690,000+

1 or 3 years

Permanent residency

€150,000+

When renting real estate in the south of Malta or on the Gozo island

2—4 months is the application processing time

Residence permit

🇲🇹 Malta residence permit

€30,000+

6—8 months

🇵🇹 Portugal residence permit

€250,000+

6—8 months

🇪🇸 Spain residence permit

€500,000+

2—3 months

€250,000+

2—6 months

🇦🇹 Austria residence permit

€100,000+

The applicant’s expenses

4—8 months

How to Obtain Cyprus PR

1

Choosing an investment option

Immigration experts reveal the nuances of all investment types and advise the option considering investor wishes.

2

Collection of documents

Investors provise papers for personal identification and documents confirming the sources of the invested funds. The lawyer assists with medical insurance, real estate rental agreements, document translation and apostille, and other legal matters.

3

Submitting the required documents

The applicant does not have to visit the island as agents in Cyprus can submit the documents. The government considers the application for 2—4 months.

4

Application approval

The relevant government department issues a letter of approval of the application.

5

Receiving a residence card

The investors must come to the island to submit biometrics. The Cyprus permanent residence card is issued for about 40 days.

With all these steps completed, you’ll be well on your way to obtaining permanent residence in Cyprus. It’s essential to maintain financial stability and adhere to immigration requirements throughout the process.

Conclusion

The Cyprus Golden Visa program offers a range of investment options and benefits for wealthy individuals seeking European citizenship. Popular choices include real estate investments and shares in local companies. The program offers tax incentives, high return potential on investments, and eligibility for European citizenship after seven years, making it an attractive option.

However, there are also limitations on family members' immigration permits and strict regulations with consequences if requirements aren’t met. Despite these disadvantages, the high living standards in Cyprus, including quality of life factors, attract investors. The stable political environment with low corporate tax rates makes it worth considering.

Frequently Asked Questions

  • What Is the Benefit of a Cyprus Visa?

    The benefits of a Cyprus Golden Visa include access to investment opportunities in real estate or local companies, European citizenship eligibility after seven years, high living standards in Cyprus, stable political environment, and low corporate tax rates. Investors can also enjoy grants and tax incentives.

  • What Are the Disadvantages of the Golden Visa?

    The main disadvantages of the Cyprus Golden Visa include strict eligibility requirements, limitations on family members' immigration permits, and potential consequences if requirements aren’t met.

    Cyprus is not in the Schengen Area, so holders of Cyprus residence permits have to apply for visas to travel to Schengen.

  • What Does a Golden Visa Allow You to Do?

    A Golden Visa allows investors to obtain residency rights in exchange for significant investments in a country’s economy. This provides business opportunities, better quality of life prospects for families as well as education options for children.

  • Which Country Has the Easiest Golden Visa?

    Cyprus, Portugal, Greece, and Spain are among countries with relatively easier golden visa programs due to lower investment thresholds and less stringent application processes compared to other countries offering similar programs such as Malta or Austria.