*by Elias Christou, Lawyer
Fear of conspiracy theories gripped all of Europe, and alleged evil plans to destroy humanity made front-page news everywhere. Nevertheless, that was not the real story after the implementation of the Schengen Treaty. What actually happened is that the treaty facilitated free and unrestricted travel within EU boundaries. A huge economic boost and achievement took place as people and goods traveled with fewer or no restrictions at all—making it a true milestone for the EU.
Years have passed, and Cyprus is now at the doorstep of the Schengen Zone. Recent statements by the Deputy Minister of Migration and International Protection, Nicolas Ioannidis, suggest that the country is in the final stages of entering the zone.
What effect will this have on Cyprus in general, both economically and socially? I would say it will trigger a mostly positive reaction for the economy and the people of Cyprus, whether they are permanent residents, naturalized citizens or locals.
First, there will be an ultimate upgrade to visa-free travel. Currently, a Cyprus permanent residency permit does not allow visa-free entry to the rest of the EU. By joining Schengen, the country's residency schemes will transform dramatically—granting holders unrestricted travel across all Schengen member countries for up to 90 days within any 180-day period without separate visa applications.
Furthermore, a significant increase in the demand for residency schemes will be an important step for the nation's economy. The addition of global mobility will turn these residency permits into highly premium assets. High-net-worth investors are anticipated to rush to secure residency precisely because this newfound travel freedom matches or exceeds rival European programs.
Lastly, because the market anticipates substantial economic growth, a wave of proactive foreign capital is expected to enter the real estate market immediately. Investors will want to secure residency at the current entry point before thresholds change.
Rephrasing the ancient philosopher Proclus, who stated that there is no bad thing without a good side, I would say the opposite: a good development always has its downside. In this case, the Cypriot people will face an increase in real estate prices and a higher cost of living in general. Can they handle it? I would say definitely yes, provided the government takes the right steps. This includes providing incentives to developers to build more affordable housing for locals, alongside increasing salaries for the working population.
*Elias Christou LLC
