On Thursday, 30th November, the Parliament of the Republic of Cyprus adopted a groundbreaking law aimed at attracting international talents. According to the proposed amendments, specialists working in international companies, earning at least 2500 euros before tax and proficient in Greek, will now be able to obtain Cypriot citizenship through an accelerated procedure. This law is expected to significantly impact the country’s property market.
On the cusp of a legislative revolution with the new citizenship law, Cyprus is undergoing substantial changes in its economic structure. This shift, targeting the attraction of global talents, particularly in the high-tech sector, is not merely a policy change but a catalyst for profound economic growth and reshaping the property market.
In recent years, Cyprus has become a magnet for high-tech companies. The number of international technology firms on the island has increased by 49%, leading to a 78% increase in jobs in this sector. Companies such as TheSoul Publishing have moved to Cyprus, relocating hundreds of international experts. This influx is expected to contribute about 3 billion euros to the Cypriot economy.
The growing presence of the technology sector is a harbinger of increased demand for residential and commercial property. As more professionals settle on the island, attracted by the appealing citizenship law, the real estate market is preparing for a significant upswing. The demand for quality housing and workspaces is expected to rise, potentially leading to an increase in property prices and revitalising the construction sector.
However, alongside these prospects, there are challenges to be faced. Potential increases in property prices could create affordability issues for local residents. Balancing the needs of incoming international professionals and the local community will be key to ensuring sustainable growth in Cyprus’s property market.
Based on available information, it is evident that the new Cyprus citizenship law introduces a number of significant changes compared to the previous law. Key differences include:
Residency Requirements: The new law reduces the required residency period from seven years to four or five years, depending on the applicant’s proficiency in Greek. This change accelerates the path to citizenship for highly skilled professionals.
Language Proficiency: The new law specifies the required level of Greek language knowledge for naturalisation, with level A2 being sufficient for a five-year naturalisation period and level B1 for a four-year period.
Character and Skills Criteria: The law introduces specific criteria for good character and high skill levels, including proven academic and professional qualifications.
