A new look at the role of the Cyprus Residency program in housing policy

In recent years, the Cyprus Permanent Residency Program (PRP), known as the Golden Visa, has been the subject of intense debate due to its impact on the real estate market and housing affordability for local residents. While some EU countries have already abandoned such schemes, Cyprus is considering reforming its program rather than canceling it.

Overview of the current situation

According to an article by Demetris Demetriades published on May 4, 2025 on the IMI Daily portal, the Parliamentary Committee on Internal Affairs of Cyprus initiated a discussion on the impact of the PRP program on the real estate market. Particular attention is paid to the issue of housing affordability for Cypriot citizens and the role of foreign investment in this context. It is important to note that at the moment there have been no official proposals to terminate the program.

General information about the Golden Visa program in Cyprus

The Cyprus Golden Visa Program is an initiative aimed at attracting wealthy foreign citizens through investments in the country's economy, mainly in real estate. With investments starting from 300,000 euros, investors receive the right to permanent residence, which provides them with free access to life, education and medical care on the island. The program is popular with citizens of the Middle East, Asia, and the CIS, offering a convenient path to a European lifestyle and stable jurisdiction. Cyprus has relatively low participation thresholds and simple administrative procedures compared to similar programs in other EU countries.

Advantages of the program

The PRP program allows third-country nationals to obtain permanent residence in Cyprus if certain investment conditions are met. This helps attract foreign investment, stimulates the development of the construction sector and promotes economic growth.

Challenges and criticism

Despite the economic benefits, the program is facing criticism due to its possible impact on rising housing prices and limiting the availability of real estate for local residents. Some cases of abuse, such as fictitious real estate transactions to obtain residency, are also of concern.

Ways of reform

Instead of canceling the program, the Cypriot authorities are considering the possibility of reforming it. The proposed measures include:

• Stricter criteria for the selection of investors.
• The introduction of additional checks and monitoring of compliance with the terms of the program.
• Limiting the share of investments in real estate by channeling funds to other sectors of the economy.

Conclusion

The Cyprus Permanent Residency Program remains an important tool for attracting investments. However, targeted reforms are needed to ensure its sustainability and minimize negative consequences for the local population. The balance between economic interests and social responsibility will be a key factor in the further development of the program.