In November 2023, Cyprus Foreign Minister Constantinos Kombos announced plans for Cyprus to join the Schengen Area. Although Cyprus has been an EU member since 2004 and adopted the Euro in 2008, it is not yet part of the Schengen Area.
This blog post explores the implications of this development for Cyprus residents, investors, and the broader European landscape.
To understand the significance of Cyprus joining the Schengen Area, it’s important to differentiate between the European Union (EU) and the Schengen Area. The EU consists of 27 countries that share standardized laws, facilitating the free movement of goods and people within a single market. In contrast, the Schengen Area focuses on border-free travel across its member states, which include most EU countries and non-EU nations like Iceland, Norway, Switzerland, and Liechtenstein. Notably, Cyprus and Ireland are not currently part of the Schengen Area.
Currently, Cyprus residency holders face certain travel restrictions. While they can freely visit or reside in Cyprus, they still require a visa to travel to other EU or Schengen countries. This process, however, is streamlined for residents, making it somewhat easier to obtain the necessary travel documents. On the other hand, Greece’s Golden Visa holders, who benefit from Greece being both an EU and Schengen member, enjoy the privilege of free movement within the Schengen Area. This makes Greece’s residency by investment program more attractive to investors seeking greater mobility.
The Cyprus government is making significant progress towards meeting the requirements for Schengen accession. The target year for joining the Schengen Area is 2025. To achieve this, Cyprus is focusing on enhancing its border management and internal security systems, primarily by fully implementing the Schengen Information System (SIS). This effort demonstrates Cyprus’s commitment to meeting the stringent conditions necessary for Schengen membership.
Once Cyprus becomes part of the Schengen Area, the benefits for Cyprus residency holders will be substantial. They will gain the ability to travel without border checks across 29 countries, enjoying a level of mobility similar to that of Greece’s Golden Visa holders. This enhanced freedom of movement is expected to make Cyprus’s residency by investment program significantly more appealing, leading to a surge in applications.
The anticipated increase in demand for Cyprus’s residency by investment program is likely to have a ripple effect on the property market:
Investment Migration Expert Yiannos Trisokkas offers a word of caution and optimism: “While the exact timing of Cyprus’s accession to the Schengen Area remains uncertain, the government’s aim to complete the process by 2025 is promising. This period marks an exciting chapter for Cyprus, with positive developments on the horizon for both investors and the local economy.”
As Cyprus moves closer to Schengen membership, the island stands on the brink of a transformative era. The anticipated benefits of joining the Schengen Area extend beyond individual mobility, promising broader economic growth and increased investor interest. For those considering investment opportunities in Cyprus, now is the time to stay informed and prepare for the forthcoming changes.
For further updates regarding Cyprus’s path towards Schengen and for details of the Cyprus Residency by Investment programme and real estate market information feel free to consult us.
