Since the Brexit referendum in 2016, 15,000 British citizens have applied for permanent residency in Cyprus. As the impact of a hard Brexit continues, more and more British residents in Cyprus are seeking to obtain a Cypriot EU passport.
1. British citizens are naturalizing in Cyprus
Current EU law stipulates that EU citizens (including British citizens) who reside in Cyprus for more than four months have the right to apply for a permanent residency certificate (M-EU3). This certificate allows them to stay in Cyprus indefinitely. Prior to 2016, these certificates were not popular among British citizens, as British passports already guaranteed this right. In the context of Brexit, an increasing number of British citizens permanently relocating to Cyprus are choosing this route to secure their residency rights. Moreover, Cyprus is reportedly one of the favorite retirement destinations for British citizens.
2. Rising property prices in Cyprus
Like many countries, property prices in Cyprus have been influenced by the economic environment and have shown a continuous upward trend. Since 2016, there has been a sustained increase over three years, with the rate of increase growing. Additionally, property prices for new homes are rising, as well as the transaction prices for second-hand homes. The term "second-hand homes" mainly refers to properties sold by overseas individuals who have successfully immigrated and are selling their fixed assets after obtaining EU status to recoup funds. This phenomenon is very common. With the increasing popularity of the Cyprus Investment Program for citizenship, property prices are also facing upward pressure due to more frequent transactions.
3. Strong economy in Cyprus
Cyprus has previously been explored for significant reserves of hydrocarbons (natural gas) in its exclusive economic zone, attracting numerous overseas investments. The rapid economic growth has made it an emerging regional energy hub. It also offers world-class property rights and solid investment, trade, labor, business, and financial freedoms. The free market in Cyprus is based on a service-oriented economy, with modernized and strengthened business and tax advantages, gradually becoming a favored business location for many enterprises.
4. Increased thresholds for Cyprus citizenship
The original Cyprus Investment Program for citizenship required only the purchase of local real estate valued at €2 million to obtain Cypriot citizenship, allowing individuals to live locally and enjoy benefits. This attracted many high-net-worth individuals looking to allocate overseas assets, parents considering their children's future, and overseas individuals concerned about retirement living. However, with the continuous push for policy changes and EU requirements, along with the increasing number of investors applying for Cypriot citizenship, Cyprus has begun to update its policy requirements, raising the thresholds, including an additional donation of €150,000 and funds for purchasing second-hand properties, among others.
5. Education in Cyprus surpasses the UK
Cyprus has an education system aligned with EU standards and is a major educational center in Eastern Mediterranean. The government invests 8% of GDP in education, ranking second in Europe for per capita education levels, exceeding the European average by 5.4%, ahead of Italy, Spain, the United Kingdom, Germany, and Switzerland. As a Commonwealth country, the education system follows a purely British model. It has the highest English proficiency rate among non-English-speaking countries in Europe, allowing students to attend universities in the UK and other European countries without language barriers after graduation.