The 4 latest trends affecting Cyprus immigration

Cyprus used to offer various investment-based immigration programs that allowed individuals to obtain residency or citizenship by investing in the country. These programs aimed to attract foreign investors, stimulate economic growth, and enhance Cyprus’ global competitiveness.

However, given the audit office’s findings of numerous cases of abuse of the scheme, it is highly likely that these investment permits in the future might face abolition or suspension as it happened with the Cyprus Citizenship by investment program in 2020.

Despite this, Cyprus continues to hold its position as one of the best countries for immigration. Its welcoming atmosphere, diverse culture, strong economy, and high quality of life make it an excellent choice for those considering relocation.

Cyprus experiences a diverse influx of migrants and holds a prominent position among the top three EU nations in both immigration and emigration rates in recent years.

Since the mid-1980s, spurred by economic expansion and the consequent demand for foreign labor, Cyprus has consistently maintained a predominantly positive net migration.

Additionally, with the reorientation of migration pathways to Europe and the implementation of the EU-Turkey Statement in 2016, Cyprus has emerged as a significant destination for asylum-seekers.

The country is effectively divided between the Republic of Cyprus and the occupied self-proclaimed (TRNC), marked by the presence of a ‘Green Line’ controlled by the United Nations. Despite the territorial disputes, Cyprus stands as a sought-after destination with a Potential Net Migration Index score of 13%. This high level of immigration, coupled with a positive natural increase, contributes significantly to the country’s population growth.

The trends impacting immigration in Cyprus encompass a diverse range of factors:

Investor’s migration

Cyprus has attracted investors through its citizenship by investment and residency by investment programs. This Cyprus immigration trend may continue, albeit with potential changes in regulations or investment thresholds to balance economic benefits and security concerns.

The Cyprus residency program grants residency to investors and their family members in exchange for specific investments in real estate, Cyprus Company’s share capital, in a house/apartment purchase or in units of Cyprus Investment Organization of Collective Investments. Successful applicants receive a residence permit, allowing them to live, and study in Cyprus with an unlimited residence validity.

It’s important to note that these programs often undergo revisions, updates, or even temporary suspensions based on changes in government policies, economic conditions, and considerations related to security and public interest. Applicants must meet stringent due diligence requirements to ensure the legitimacy and credibility of these programs.

Moreover, these investment-based immigration programs have faced scrutiny and criticism in some instances due to concerns about potential money laundering, security risks, and their impact on local real estate markets. As a result, countries that offer such programs continuously review and update their regulations to address these concerns while maintaining the programs’ economic benefits.

Anyone considering participation in investment-based immigration programs should seek advice from legal and financial professionals specializing in immigration law and investment to understand the eligibility criteria, application process, and potential risks involved.

Cyprus Immigration: Geopolitical changes

Geopolitical changes in the neighborhood have also played a pivotal role.

Cyprus stands out as one of Europe’s safest havens. With minimal crime rates, residing in Cyprus provides a profound sense of security. While instances of bribery and corruption exist as the most prevalent crimes, Cyprus remains acknowledged as a secure destination for both everyday life and travel. Globally, Cyprus holds the 64th position out of 168 countries in the Global Peace Index and ranks 23rd within the EU. Notably, it boasts a safer environment compared to countries like France (ranked 67th) and the US (ranked 131st).

As per the neighboring country conflict affection, it profoundly impacts Cyprus in ways that might not be immediately evident as events unfold. However, this current period is pivotal and is instigating significant shifts in the region.

Particularly the Israeli-Palestinian conflict, does have some implications for Cyprus due to the regional dynamics in the Eastern Mediterranean. Cyprus and Israel have developed closer ties in various fields, including energy, security, and diplomacy. Both countries share common interests in the Eastern Mediterranean region, including the exploration and extraction of offshore natural gas reserves. They have engaged in partnerships and agreements related to energy exploration, leading to the development of joint ventures in the region.

However, the Israeli-Palestinian conflict has broader regional implications, and tensions or escalations in that conflict that can indirectly impact Cyprus and the surrounding regions. Heightened tensions in the Eastern Mediterranean, including those involving Israel, can sometimes affect regional stability and have economic and geopolitical implications for neighboring countries like Cyprus.

Cyprus has maintained relations with both Israel and Palestine, advocating for a peaceful resolution to the Israeli-Palestinian conflict based on a two-state solution and supporting efforts for dialogue and negotiations. While the Israeli-Palestinian conflict does not directly involve Cyprus, the broader regional dynamics, including the relationships between Israel, neighboring countries, and their political stances, can have implications for Cyprus’ geopolitical situation, security considerations, and regional partnerships.

Cyprus remains divided between the Republic of Cyprus and the occupied (so-called) Turkish Republic of Northern Cyprus, these experiences migration dynamics influenced by this division. Additionally, shifts in migration routes to Europe and agreements like the EU-Turkey statement 2016 that have altered migration patterns, is making Cyprus a notable destination for asylum-seekers.

Increasing rent prices

Increasing rent prices and the establishment of new universities, impact the migration trends. Rising rental costs affect the attractiveness of Cyprus as a destination, potentially influencing migration decisions. Conversely, the opening of new universities could attract students and academic professionals, leading to migration flows. 

The housing in Cyprus has escalated into a significant concern, marked by an unprecedented surge in rental prices. While the root causes of this situation are varied, it is evident that landlord greed, the absence of regulations, and the apathy of real estate agencies and the government have substantially fueled the issue. A primary factor driving high rental rates in Cyprus is the scarcity of affordable housing. The country has experienced a population surge in recent years, partly due to an influx of foreign workers, retirees, asylum seekers, students and expats exerting pressure on the housing market.

With a greater number of individuals vying for a limited housing supply, landlords and property owners have capitalized on this demand by raising rents considerably. Another contributor to the soaring rents in Cyprus is the absence of housing market regulations. In contrast to many other nations, Cyprus lacks rent control laws, granting landlords the liberty to set rental rates at their discretion. Consequently, some landlords exploit this freedom by charging exorbitant rents for inadequate housing accommodations.

Integration of green technologies

Integration of green technologies in Cyprus also influences immigration trends. Cyprus’ commitment to sustainable energy sources attracts individuals interested in eco-friendly living or green technology industries, potentially impacting migration patterns towards the country. These diverse trends collectively shape the landscape of immigration in Cyprus, affecting its demographics, economy, and societal dynamics.

Cyprus is swiftly advancing toward a shift to a sustainable economy, aiming not only to revive the nation’s financial well-being post-pandemic but also to seize significant new investment prospects for diversifying our economy.

Cyprus possesses a distinctive opportunity to leverage targeted environmental strategies due to its geographical and climatic conditions. Three pivotal actions could drive substantial advancement: Initially, Cyprus should expedite the transition to renewable energy sources, specifically solar and wind energy.

The island’s abundant sunlight renders solar photovoltaic systems notably efficient in electricity generation, diminishing reliance on imported fossil fuels and curbing greenhouse gas emissions. Moreover, tapping into wind energy can diversify the energy portfolio. Secondly, addressing Cyprus’ susceptibility to drought and water scarcity stands as a crucial priority.

This involves adopting water-conservation technologies, enhancing agricultural irrigation efficiency, and fortifying water supply infrastructure. Thirdly, Cyprus necessitates an enhancement in its waste management approach by emphasizing reduction, recycling, and the embrace of a circular economy.

The implementation of robust recycling programs for households and businesses holds the potential to substantially decrease landfill waste. Embracing the circular economy model, which minimizes waste and maximizes resource reusability, presents both environmental and economic advantages.

Conclusion

In conclusion, Cyprus has witnessed diverse and dynamic trends in immigration over the years, shaped by factors ranging from investment-based migration programs to geopolitical changes, rising rent prices, and the integration of green technologies. While investment-based immigration programs have faced scrutiny and changes in regulations, Cyprus continues to be an attractive destination for those seeking a high quality of life and economic opportunities.

As a law firm specializing in immigration, we understand the importance of staying informed about these evolving trends and their implications for our clients. We are committed to providing expert legal guidance and support to individuals and families looking to navigate the complexities of immigration in Cyprus.