Cyprus authorities are introducing measures to support the economy
In order to restore the country’s economy, the Cypriot authorities decided to simplify the procedure for obtaining citizenship in exchange for investment. Now the issuance of documents will go faster. The government took such steps after the crisis, which was due to the coronavirus epidemic.
Despite the fact that not so long ago there was talk of closing the program, the global economic crisis has made adjustments. And now applications for a Cyprus passport will be processed in an accelerated manner. Such changes concern only the investment program, in all other cases the procedure will not change.
In order not to cause panic among the population, the country’s authorities assure that the local economy was slightly affected by the epidemic. However, the support in the form of investments will be very convenient for it, although the investment from this option of obtaining a Cyprus passport occupies only 1.2 percent of GDP. If you calculate how much money the naturalization program has brought since 2013, you will get a rather tangible amount – 6.6 billion euros.
In the last few years, the program has changed and the rules have been tightened. Now the volume of issued permits should not exceed 700 per year. In addition, the Government has been considering a bill on a number of other restrictions, including freezing the programme. However, due to the crisis phenomena in the world economy, the authorities did not take such measures.
According to some experts, a falling market is a great opportunity for investment. Now property prices in Cyprus have fallen slightly, which is primarily noticeable in the secondary housing. A villa, which recently cost 2.5-3 million euros, can be purchased for 2 million euros, and a little lower amount. Profitable are also package investments in apartments in new buildings.
As in most countries, the property market in Cyprus shows a decrease in dynamics. Many transactions are suspended, some foreign investors have left the segment, preferring to hold on to their funds during difficult times and wait until the situation stabilizes. Recovery may take some time, but how much is still unknown.
The decline in the property segment of Cyprus began before the coronavirus epidemic. The reason for this was the tightening of the rules of the citizenship program. A total of 742 objects were sold in January this year, 30% of which – transactions with foreigners. Compared with the previous period, the activity of the latter decreased by 20%.
As a result of the epidemic, rent has also suffered. Many people refused to book objects, cancelled vacations and moved to the country. Owners have to reduce rental rates in order to attract customers for long-term rentals.