End of “Passport for Investment” program and the impact on new properties projects

Nicosia announced last November 1st the withdrawal of the “Passport for Investment” program, one of the measures that the country launched during the Great Recession to obtain quality investments. All of this occurred amid accusations of the behaviour of a senior state official and a legislator regarding the program management. Until the situation is resolved, and new regulation is implemented, the program will not be in effect. Cyprus is an excellent destination for doing business, buying a home, or engaging in leisure and tourism.

under a growth context, you have particularly good alternative investment fund options and thriving shipping business. More than 70% of the population speaks English and has a remarkably high Human Development Index, ranking 33rd in the world. In addition, Cyprus has some of the best beaches in the Mediterranean Sea and the island is full of culture, with 10,000 years of history. Many countries hit by the Great Recession saw citizenship programs as a legal opportunity to improve their economies.

This was the case of Malta, Bulgaria, and Portugal, among others. In the case of Cyprus, the program attracted many foreign investors. Around 4,000 passports were issued, generating profits of more than 7,000 million euros (8,250 million dollars). Without a doubt, the decision to withdraw the “Passport for Investment” program will have an impact on new properties projects.

But it will be partial. The current decline in property prices is an excellent opportunity for those citizens who are members of the European Union who wish to invest in Cyprus. In addition, it should be noted that the World Bank and the IFC place Cyprus among the top 40 economies in the world about investor protection, thanks to its performance in key indicators, such as transparency indexes and the ease of shareholder lawsuits. Cyprus has a modern, free-market economy based on the services that it provides to international investors under an environment of trust, inclined to invest, grow, and progress.

Thus, we are living in a very particular scenario. It will be necessary to follow the coming month's events, especially with everything related to the Covid-19 vaccine and the political and economic decisions that will be determined from Brussels.