Why Now is the Time to Apply for Europe’s “Hidden” Golden Visa

Why Now is the Time to Apply for Europe’s “Hidden” Golden Visa
Cyprus’ golden visa offers EU access, low cost, and lifetime residency—while it lasts.|©iStock/MindStorm-inc

Many people know that with a big enough investment, you can get a golden visa that allows you to live in a European Union country… and that those visas have been getting more expensive over time.

But there's a “hidden” golden visa in Europe… and it's less expensive than most others.

But big changes could be coming.

The Mediterranean island of Cyprus joined the European Union in 2004. Most of the island is Greek-speaking, reflecting thousands of years of connections with that country.

In 2013, Cyprus introduced a Permanent Residency by Investment program as an alternative to its previous citizenship by investment, which was abolished under pressure from the EU. Successful applicants need to invest €300,000 in real estate, businesses, or approved funds. Applicants can buy up to two properties to qualify, but they must be new builds, as resales don't count.

Unlike most other golden visa programs, Cyprus also requires annual income of at least €50,000, plus €15,000 for a spouse. It allows lifetime residency rights in the Cypriot Republic, and no physical presence requirement beyond visiting every two years. For people who opt out, there are no tax requirements. After five years of substantial physical presence in Cyprus, you can apply for citizenship.

There's just one problem: Cyprus isn't part of the Schengen zone, which allows borderless travel. But up to now, that's been a blessing in disguise.

Despite their increasing popularity with Westerners, historically, most golden visas have gone to people from countries that don’t enjoy visa-free access to the European Union: Chinese, Russians, Iranians, and folks from the Middle East. But since Cyprus hasn't been part of the Schengen Zone—for reasons I'll explain—there's been little interest in its golden visa from that quarter. That in turn has kept Cyprus’ golden visa cheaper than Portugal and Greece.

But that may be about to change.

The government of Cyprus only controls the southwestern two-thirds of the island. The rest is under the control of a breakaway Turkish-speaking republic, which isn't recognized by any country except Turkey. After a brief civil war, a “Green Line” was established by the United Nations to separate the two. To ease tensions, the Green Line is easy to cross, like the border between Northern Ireland and the Irish Republic. But that makes it too insecure to serve as an external EU border. Hence, the Cypriot Republic cannot join the Schengen Zone.

This puts the Cypriot government in an odd position. On one hand, it urgently wants to join Schengen, which would boost tourism and fulfil its legal obligations to the EU. On the other hand, the government refuses to acknowledge that the Green Line would be an EU border, since that would implicitly recognize the sovereignty of the breakaway Turkish Republic in the north.

Nevertheless, the Cypriot government is pushing hard to achieve full Schengen membership by the end of this year. What if it succeeds?

Cypriot politicians freely acknowledge the answer: Their golden visa would become instantly popular, especially because of its low price compared to others in the EU. That would lead to an influx of applicants, boosting government revenues. And as with any market, if demand rises enough, the government would be able to increase the price of a golden visa.

All this means that if you're thinking about pursuing a low-cost golden visa in Europe, apply now before the price increases!

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