- within Immigration topic(s)
- with Senior Company Executives, HR and Finance and Tax Executives
- in Australia
- with readers working within the Property industries
Throughout the years, Cyprus stands out as a favoured destination for foreign real estate investment, owing to its strategic geographic location, Mediterranean climate, and stable legal system rooted in English common law principles. A key element that attracted significant foreign capital, particularly from third-country nationals, was the Cyprus Investment Programme (CIP). This programme, often referred to informally as the "Golden Passports," allowed non-EU investors and citizens to obtain Cypriot citizenship by investing substantial sums in the country—most commonly through residential property acquisitions.
The Cyprus Investment Programme was officially terminated in November 2020, as concerns were raised over the integrity of the process granting the citizenship and its vulnerability. The termination of the scheme was effected on the 13 October 2020 by a decision made by the Council of Ministers, with the programme ceasing its operation from 1 November 2020. Since then, no equivalent citizenship-by-investment scheme has been introduced to replace it.
In the post-CIP environment, the legal landscape governing property acquisitions by foreign nationals in Cyprus has returned to its pre-existing foundations. EU nationals continue to enjoy the benefits of the free movement of capital under Article 63 of the Treaty on the Functioning of the European Union (TFEU), and may acquire immovable property in Cyprus without limitations. In contrast, third-country nationals are subject to The Acquisition of Immovable Property (Aliens) Cap. 109.
Despite the termination of the CIP, a structured procedure remains available for non-EU nationals seeking long-term residence in Cyprus through the Permanent Residency Programme (PRP) which is governed by Regulations 5 and 6(2) of the Aliens and Immigration Regulations. The PRP is not a citizenship pathway but grants indefinite immigration status. The programme requires a minimum investment of €300,000 plus VAT in newly built residential property and mandates that applicants provide evidence of secure annual income of at least €50,000, increasing for each dependent. Other requirements include a clean criminal record and the obligation to visit Cyprus at least once every two years in order to retain residency status. As of July 2025, the PRP remains operational and continues to attract non-EU investors, especially from jurisdictions such as Israel, Lebanon, and Ukraine. The PRP offers a fast–track procedure for obtaining permanent residency through a real estate property investment.
Simultaneously, regarding the changing regulatory framework, the government of Cyprus has recently announced its intention (August 2025) to introduce legislative measures that would further restrict the ability of third-country nationals to acquire property. Although no formal regulations have been enacted, draft provisions are reportedly under review, and public statements by officials suggest amendments to Cap. 109 may soon be tabled. These proposed restrictions appear to be motivated by concerns over the impact of foreign investment on housing affordability and urban development patterns in certain high-demand regions. The new legislation will aim to address uncontrolled property acquisitions by non-EU nationals that are taking place without proper oversight. These practices usually refer to the establishment of a legal entity in Cyprus which then acquires property without any restrictions.
Furthermore, the broader regulatory environment has evolved in response to pressure from the European Union and international bodies calling for enhanced anti-money laundering (AML) and terrorist financing controls. Real estate transactions involving foreign buyers—particularly non-EU nationals—are now subject to heightened scrutiny. Law firms, banks, real estate agents, and developers must ensure strict compliance with Know-Your-Customer (KYC) obligations, source of funds verification, and reporting duties under the Prevention and Suppression of Money Laundering Activities Law 2007. The supervisory authorities, including the Cyprus Bar Association and the Institute of Certified Public Accountants of Cyprus (ICPAC), are actively monitoring adherence to these standards.
From a practical standpoint, non-EU buyers are advised to initiate legal due diligence at an early stage, especially in light of potential delays in securing acquisition permits and completing title registration. Applications submitted under Cap. 109 may take several months to be processed, and any missteps can lead to costly complications. Additionally, properties acquired under the PRP scheme must be declared as the applicant's permanent residence and are subject to restrictions on leasing and resale—particularly within the first five years, where premature disposal may affect the residency status granted.
In conclusion, while the termination of the Cyprus Investment Programme has altered the investment landscape, Cyprus continues to welcome foreign real estate investors under a revised and more regulated framework. The permanent residency scheme remains a viable route for third-country nationals seeking long-term access to Cyprus, albeit without the citizenship benefits previously available. At the same time, the emerging trend toward additional restrictions on foreign ownership—combined with enhanced AML compliance expectations—demands a more careful and legally informed approach to property acquisition. Investors, developers, and legal practitioners alike should remain attentive to forthcoming legislative changes, especially those affecting non-EU nationals' rights to acquire immovable property under Cap. 109.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
