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July 28, 2020

Cyprus’ CBI programme boosts country’s real estate market

According to the 11th edition of the KPMG Cyprus Real Estate Market Report – The Insights, the real estate sector in Cyprus contributed 16% more in 2019, compared to 2018, with the country’s citizenship by investment (CBI) programme contributing to this increase.

The report states that real estate contributed some €3.24 billion to the Cypriot economy in 2019, which translates as 17% of the country’s GDP during 2019 and which is higher than the combined contributions of the financial and insurance activities and the manufacturing sectors.

In particular, the report shows it was high value residential property transactions, those more than €1 million, that rose the most in 2019 (up 18% from 2018) with the majority of high-value real estate sales (68%) for properties valued between €1-2 million, followed at 26% by properties valued at €2-3 million and 3% by properties valued more than €3 million.

The report explains that the real estate sector in Cyprus has recovered significantly since the introduction of Cyprus’ citizenship by investment programme in 2013, which allows non-Cypriots to invest in high-end property in exchange for Cypriot citizenship after just six months.

Offering four investment options, potential Cypriot citizens need to invest a minimum of €2 million with real estate an option for five years, but can then significantly reduce their property investment to €500,000 after five years from the citizenship being granted, but must retain this investment in order to maintain citizenship. This enables citizenship for the main applicant, their spouse and children under the ages of 28 with the potential to add a parent for an additional €500,000.

The programme, which has recently undergone reforms, offers an array of real estate investment options, from small residential properties to luxury villas.

One of the safest places in the world to live with high levels of education, Cyprus is a member of the EU, which means citizens can work, study and live in any of the 27 member states of the EU and a Cypriot passport entitles citizens visa-free access to 174 countries.

The programme, which was recently updated with tightened regulations, is capped at 700 applicants per year and takes around six months to process.

For more information on Cyprus’ citizenship by investment programme, read the County Profile by clicking here