During the REALTYON EXPO 2025 we heard both government officials and experts on real estate discussing the advantages of Cyprus entering the Schengen area.
Since I graduated law in 2005 I have been regularly asked by investors to tell them when am I expecting Cyprus to enter the Schengen area. Well, the answer grew to be from “I am not expecting that to happen” to “most probably soon”.
Finally, Cyprus takes significant steps towards joining the Schengen Area.
This has great implications for investors and expatriates. As Cyprus enters the SCHENGEN area it is anticipated to open new avenues for economic growth, enhance mobility, and create a more attractive environment for foreign investments.
Currently, Cyprus is in the process of finalizing its Schengen application, with expectations that full accession could happen within the next few years, potentially by 2025. This development is particularly exciting for those interested in the real estate market and permanent residency program that Cyprus has to offer.
One of the most appealing aspects of this transition is the opportunity for investors to take advantage of the Permanent Residency Regulation 6.2. This fast-track program allows non-EU nationals to secure permanent residency in Cyprus by investing, currently, a minimum of €300,000 plus VAT (reduced to 5% instead of 19% for own residence), in real estate.
With the added benefit of Schengen membership, investors will not only enjoy the beautiful Mediterranean lifestyle that Cyprus offers but also the freedom of movement across 26 European countries.
Investors are encouraged to act swiftly, as the demand for properties is expected to rise significantly once Cyprus is officially part of the Schengen Area and it is expected to see an increase to the €300.000 threshold being increased to €400.000 or more. Securing permanent residency now could provide a strategic advantage, enabling investors to capitalize on potential increases in property values and rental yields.