A New European “Golden Visa”?

The Mediterranean island nation of Cyprus is considering a new “Golden Visa” scheme that could result in citizenship of this EU country in less than four years.

As I’ve pointed out before, countries offer these visas because they want foreign money coming into their economy.

However, countries like Portugal, Spain, and Greece have found that visas based on property investment can backfire in the form of overheated property markets.

That’s why all three countries are instead moving toward residency programs based on showing you have regular, provable income…

Cyprus is proposing a hybrid program.

Successful applicants would need to invest a minimum of €250,000 in residential property. But they’ll also need to demonstrate at least €40,000 in annual income, with €10,000 more for each extra family member you want included on the visa.

Some members of the Cypriot parliament argued that the investment requirement should be as low as €150,000—making this by far the cheapest residential property investment visa in Europe.

But before you jet off to Cyprus to research property… this is a proposal, and has yet to be passed out of the Home Affairs committee. Some committee members cited the Portuguese experience to argue against low thresholds—concerned about the impact on local households.

Another complicating factor is that Cyprus already has a residential investment-based visa, which requires a minimum purchase of €300,000. But this one has no income requirement. Committee members also raised questions about how the two would interact.

With either visa, you could be eligible for citizenship after three-and-a-half years. Again, that’s by far the shortest in Europe.

Qualifying for citizenship by naturalization requires lengthy periods of uninterrupted living in Cyprus, as well as knowledge of the Greek language.

Traditionally the Cypriot program has attracted primarily Russians and Chinese. But with Portugal and Spain closing the residential investment option, and Greece raising prices in many parts of the country, Cyprus is clearly gambling on interest from the US, UK and other countries. An EU passport is a huge draw… It comes with the right to live and work in 27 countries.

If you’re looking for a Mediterranean lifestyle, Cyprus certainly is attractive.

But if you’re interested in taking advantage of this program if and when it’s enacted… you probably want to do so quickly.

The new visa proposal comes at a time when the EU is getting closer to cracking down on citizenship-for-sale programs. The European Commission has just approved a proposal to ban such programs in Europe, which would take effect in 2025.

Although the Cyprus proposal isn’t technically citizenship for sale, it requires only a brief period of residency before you get citizenship, as in Malta. The EU is unlikely to consider the difference a material one. Both countries are under increasing pressure from the EU to end low-cost residency-by-investment programs altogether.

It may be that the Cypriot government is looking to make some quick income before the final EU crackdown comes.

And so—you too will want to act fast.

(If you want to discuss your residency and citizenship options in Europe with me directly… book a consultation here, now.)