ARTICLE 08.12.2022. Cyprus The most southeastern island in the Mediterranean. Popular among holidaymakers, emigrants and investors. Almost two years after the Brexit, there are now new draft laws for the nearly 17,000 English on the island, which will affect the real estate market.
Cyprus was a crown colony of the British for 35 years from 1925 to 1960. Many of them still live today, especially in the Paphos region of Cyprus, and own real estate. However, the new draft law, which is to come into force on January 1, 2023, will now make it much more difficult for non-Europeans to stay in Cyprus. In addition to numerous conditions such as proof of private health insurance, every Englishman must now prove a monthly income of at least €2,000 for a temporary residence permit. This amount increases by 20% for the spouse and by 15% for each child. When calculating the amount, transfers abroad or to third parties are not taken into account.
Many English people are already complaining on social media that they will no longer be able to keep their property when the changes to the law come into force. As a result, many Englishmen will sell their properties in Cyprus in the next two years, as the conditions for obtaining a residence permit are becoming more and more stringent. Accordingly, many properties will come onto the market, which until now has been artificially minimized and thus controlled by Cypriot banks and brokers.
The island's large vacancy rate will therefore continue, with property prices falling due to lower demand and greater supply. For Europeans, this means cheaper real estate prices over the next two years in what is probably Europe's most popular tax haven.
