Following recent changes to the Greek and Portuguese Golden Visa schemes, Cyprus’ Permanent Residency Programme now offers the most cost-effective route into the EU. A minimum investment of €300,000 (+VAT) into a residential property allows individuals, and their families, to qualify for permanent residency in the country, which is now over €50,000 cheaper than the equivalent scheme in Malta and over €200,000 cheaper than Germany and Greece. While Ireland, Spain and Portugal have all closed their entries via real estate investment and Greece has most recently raised its Golden Visa entry threshold costs significantly.
According to Cyprus’ largest development group, Leptos Estates, this could lead to a surge in activity from the UK, as British Expats, already 1/3 of all annual property purchasers on the mediterranean island. With tourist arrivals reaching record levels in 2024 – increasing by 5.3% on visitor numbers in the same period in 2023 and sales to British buyers up 10% in the same period – the signs are pointing towards a rise in interest from the UK.
Leptos Estates recorded a remarkable increase in Permanent Residency enquiries and applications from individuals based in the UK in 2023, with a specialist support team put in place to assist with securing the right property to qualify for the residency requirements. Applications in 2024 are already higher at this stage of the year compared to 12 months previously.
One of the key benefits of the Cypriot Permanent Residence Programme is the ability for foreigners to then acquire a lifetime Immigration Permit for themselves and their families, whilst benefitting from unlimited access across the EU, which is an increasingly enticing option for Brits now feeling the implications of Brexit and the restriction of their original rights of access across EU nations.
For those expats looking to continue to split their time between Cyprus and the UK but wishing to circumnavigate the current visitation restrictions in place for non-EU nationals, the rental market in the country is one of the strongest in Europe.
The average yield in Cyprus reached 7% in 2023, which was significantly higher than Greece (4%), Italy (3%) and France (2%) and bettered only by Ireland (8.5%)[1]. However, a shortage of new housing in stock in Ireland is set to see this figure drop, whilst the building boom across Cyprus in recent years has seen investors boosted by a 21% average annual return on off-plan new build properties[2].
The most popular property types for British buyers through the Permanent Resident are pre-built homes within developments that have an established and thriving community, whilst off-plan homes that offer the potential for immediate value uplift (investors average annual returns of over 20% on off-plan properties currently) are also rising in popularity.
The prices for off-plan properties through Leptos Estates are more attractive for those looking for investment returns over an immediate residencedue to the length of time it takes from purchasing the land to the property being completed. The potential increase in value from start to finish is enticing for those that have already established a life on the island but pre-Brexit or those looking for a holiday home but are not in an immediate rush.
Currently the most popular properties with British buyers seeking a part time or permanent home in the sun are apartments or self-contained villas on private resorts, with a strong community, such as Kamares Village in Paphos where prices start from €567,000 (+VAT) for a 2-bedroom villa.
Perched on a prominent hilltop overlooking the Mediterranean Sea, Kamares Village. With its tree lined streets and plush landscaping, has established a thriving community of expats, the community’s freehold villas creating a country club atmosphere, with numerous social events and activities organised at the Kamares club, which is situated at the heart of the development.
For those purely looking to secure a home close to the Permanent Residency minimum threshold, Akamantis Gardens offers a spectacular collection of townhouses from €303,000 (+VAT). A highly sought-after resort development in the seafront town of Polis. The two-bedroom villas are surrounded by landscaped gardens and face onto a large communal swimming pool, whilst the beach is a stone’s throw from the development and popular shops and restaurants within a three-minute walk.
Pantelis Leptos, Co-President of Leptos Group of Companies, said, “Cyprus now offers the most attractive Permanent Residency Programme in the EU and coupled with rising tourism and property investment in the island we expect to see enquiries and sales rise significantly in the next 12-month period.
“Due to its thriving economy and numerous substantial development projects, Cyprus is now being recognised as a leading global luxury investment destination. We have seen a marked increase in sales to those buying not only for the Residency programme but also to make the country a place to call home be it permanently or as a major base during business or travel through the year.”
Leptos Estates is the leading provider of new homes in Greece and Cyprus. For more information contact Leptos Estates on Tel: +357 26880120 (Cyprus), +30 28210 20830 (Greece), +44) 208 883 2333 / (+44) 788 767 3342 (UK), email: [email protected] or visit: www.leptosestates.com