Cyprus, with its favourable climate and strategic location, has become an attractive destination for high-net-worth individuals looking for a peaceful Mediterranean lifestyle. The country offers multiple benefits for those considering immigration, but there are also challenges to be aware of.
Elena Kozyreva, Managing Director for Real Estate projects, Investment Programs Expert at Immigrant Invest, breaks down key aspects of living in Cyprus, including the benefits and drawbacks of residing on the island, and how to get Cyprus permanent residence.
Immigration to Cyprus statistics
In recent years, Cyprus has seen steady growth in the number of people living in Cyprus. According to government data, over 50,000 people from various countries now reside in Cyprus, with many being high-net-worth individuals attracted by investment opportunities and lifestyle benefits.
This trend is especially strong among investors from Europe, Asia, and the Middle East, with a significant number opting for the Cyprus Golden Visa program.
Foreign direct investment plays a critical role in the Cypriot economy. Real estate is particularly popular, with over 20% of property purchases in 2024 made by non-Cypriots. Many of these buyers are seeking a permanent residence permit, with the Golden Visa being one of the most sought-after routes.
What is Cyprus Golden Visa?
The Cyprus Golden Visa is a residence-by-investment program that allows individuals to obtain permanent residency in Cyprus by making a qualifying investment, most commonly in real estate. The minimum investment is €300,000 in real estate, and applicants must also meet a few additional requirements, such as maintaining health insurance and proving a stable income source.
One of the key advantages of the Cyprus Golden Visa is the fast-track process, allowing applicants and their families to secure permanent residency within 9 months. This visa does not require physical presence on the island, but maintaining the investment is necessary to retain residency status.
11 benefits of living in Cyprus
1. Mediterranean climate. Cyprus boasts over 300 sunny days a year, providing a pleasant climate for most of the year, which is especially appealing to those coming from colder regions.
2. Strategic location for business. Situated at the crossroads of Europe, Asia, and Africa, Cyprus offers easy access to multiple markets, making it an attractive hub for international business.
3. Low crime rate. Cyprus is considered one of the safest countries in Europe, with a low crime rate and a high standard of living.
4. High-quality healthcare. Residents have access to both public and private healthcare systems, with many doctors trained in the UK and the EU, ensuring high-quality medical services.
5. Attractive tax regime. Cyprus offers favourable tax policies for residents, including low corporate tax rates and no inheritance tax, making it a tax-efficient destination.
6. Multilingual environment. English is widely spoken in Cyprus, making it easier for expats to integrate and conduct business without a language barrier.
7. Strong real estate market. The property market in Cyprus remains stable, with growing interest from foreign buyers seeking investment and residency opportunities.
8. EU membership benefits. As a member of the European Union, Cyprus offers residents easy access to travel and business opportunities across the EU.
9. Education options. Cyprus offers a variety of international schools that cater to the needs of expatriates, with curricula that follow British, American, or European systems.
10. Family-friendly living. With a focus on family values and a relaxed lifestyle, Cyprus is known for being a welcoming environment for families with children.
11. Low cost of living. Compared to other EU countries, Cyprus offers a relatively affordable cost of living, especially in housing and general expenses.
5 cons of living in Cyprus
1. Hot summers. While the Mediterranean climate is a benefit for many, the summers in Cyprus can be extremely hot, with temperatures reaching +40°C in some regions.
2. Limited public transport. The island’s public transport system is underdeveloped compared to other European countries, making car ownership almost essential.
3. Bureaucratic processes. Navigating the local bureaucracy, especially for permits and business registrations, can be time-consuming and sometimes frustrating for expats.
4. Healthcare costs for non-EU residents. While the healthcare system is high-quality, it can be expensive for non-EU residents without comprehensive private health insurance.
5. Slower pace of life. While the relaxed lifestyle appeals to many, it can also be challenging for those accustomed to fast-paced business environments. Business processes and daily routines can often move at a slower pace.
How to apply for Cyprus with permanent residence permit by investment
To apply for a permanent residence permit in Cyprus by investment, you need to follow a few key steps. First, you must make a qualifying investment, most commonly a real estate purchase of at least €300,000. Once the investment is secured, you submit an application with supporting documents, including proof of income, a clean criminal record, and health insurance.
The application is then reviewed by Cypriot authorities, who typically process it within two months. Once approved, you and your family can enjoy permanent residency status, with the right to live and travel freely within Cyprus.
Checklist before relocation to Cyprus
Ensure all documentation is in order. Before moving to Cyprus, it is essential to have all your legal paperwork, such as residence permits, investment documents, and health insurance, prepared. You should also check your visa status if required.
Organise accommodation. Whether you are buying a property through the Golden Visa programme or renting a place, securing accommodation in advance will help ease your transition.
Health insurance. Make sure you have adequate health insurance coverage, especially if you are not an EU citizen. Cyprus offers various private insurance plans tailored to expats.
Plan for the climate. The Cypriot climate is warm, so it is essential to prepare for hot summers by ensuring your home is equipped with proper cooling systems.
Understand local taxes. While Cyprus offers tax advantages, it’s essential to understand the local tax regulations, especially regarding property ownership and business income.
Conclusion
Cyprus offers a unique blend of Mediterranean lifestyle, favourable tax benefits, and strong investment opportunities, making it an attractive destination for high-net-worth individuals. However, there are also challenges to consider, such as the hot climate and bureaucratic processes.
Cyprus Golden Visa provides a fast-track option to permanent residency. If you’re considering immigration to Cyprus, it’s important to weigh both the advantages of living in Сyprus and drawbacks carefully.
