Cyprus to Offer Permanent Residency with Property Purchase of €250,000 Instead of €300,000

A bill currently under consideration in the Parliament of the Republic of Cyprus proposes granting permanent residency to non-EU citizens who purchase real estate for at least €250,000 + VAT. The Ministry of Interior, which developed the document, suggested lowering the threshold by €50,000 from the current €300,000. When is the new law expected to be adopted?

The goal of the bill is to attract more foreign investors to Cyprus who can guarantee their financial stability while residing on the island.

When is the new law expected to be adopted?

Parliamentary proceedings were on hold until June 9 due to European Parliament and local elections. The draft law is currently under review by the Interior Committee. It may be brought to a full parliamentary vote either before the summer recess or in the fall or early winter of 2024.

What are the requirements of the new bill?

To obtain permanent residency in the Republic of Cyprus, a non-EU citizen must purchase property worth at least €250,000 + VAT.

In addition to the property ownership requirement, the foreigner must have a guaranteed annual income of €40,000 (compared to the current €50,000) plus €10,000 per year for each dependent family member (spouse and minor children or adult children who are university students). The stable annual income can come from a salary earned abroad, rental income from property owned outside Cyprus, interest on deposits, etc.

Should the threshold be reduced to €150,000?

According to Phileleftheros, some MPs propose reducing the minimum property value for permanent residency to €150,000. They argue that lower prices would help developers sell off unsold homes and apartments that have been waiting for buyers for years. However, this proposal has opponents who argue that a lower price threshold could increase housing demand, which would drive up prices and negatively affect local buyers.