Cypriot MPs Debate Golden Visa in Run-Up to Schengen Accession

Charles Savva has dismissed opposition concerns, labelling them as “complete and total political nonsense.”

Cyprus’s accelerated push to join the Schengen Area by 2025 has intensified concerns among opposition politicians about potential abuse of its golden visa program, as they question whether the island nation’s residency program could become a backdoor for unrestricted European Union travel.

The golden visa program, which grants permanent residency to third-country nationals who invest at least €300,000 in real estate or corporate shareholdings, would provide holders with visa-free access across the 29-nation Schengen zone once Cyprus joins.

Opposition politicians and independent lawmakers have expressed alarm that this combination could trigger a surge in applications from wealthy foreigners seeking EU mobility rather than genuine residence in Cyprus.

Akel MP Giorgos Loukaides warned that individuals seeking EU permanent residence “prefer other states which are full members of Schengen, as this facilitates their travel within the European Union.”

He argues that, were Cyprus to achieve full membership, it would be reasonable to assume that the golden visa program would accelerate.

The concerns fall in line with broader European policymakers’ anxieties about investor visa programs that have previously drawn Brussels’ ire.

Cyprus axed its citizenship-by-investment program in 2020 following infringement proceedings from the European Commission. The ECJ recently ruled in favor of the Commission against Malta’s MEIN policy as well.

Independent MP Alexandra Attalides has connected the timing of Cyprus’s renewed Schengen efforts to the “golden passport” controversy.

The government began seriously pursuing Schengen membership in 2019, the same year Brussels issued its damning report on investor citizenship programs.

“So 2019 is the year when we started getting into trouble with the EU over the passports, and also when we finally got the ball rolling on Schengen,” Attalides observed.

Schengen Accession Close, but Obstacles Remain

The current golden visa program operates under less oversight than the citizenship by investment program. While the defunct citizenship program required cabinet approval, residency decisions rest with a single minister.

Akel has submitted two parliamentary bills to tighten controls, including one that would eliminate the discounted 5% VAT rate for golden visa property purchases and another that would scrap the program entirely within six months unless the government establishes explicit criteria.

Cyprus’s Schengen aspirations face additional hurdles beyond the golden visa debate. The island’s division presents unique challenges, as the Green Line buffer zone would effectively become the EU’s external border. Foreign Minister Constantinos Kombos has described full Schengen accession as a “national goal” while repeatedly assuring lawmakers that crossing points between north and south would not become “Schengen entry points” and that Cyprus would “never accept” the ceasefire line as an external border.

The European Commission has made clear that Cyprus’s accession must “uphold the highest security standards” and “respect its special circumstances,” referring to the fact that EU law is suspended in the north, where the Republic of Cyprus has no control.

Recent analysis by the Cyprus Investigative Reporting Network suggests the government has yet to even begin discussions with the EU Commission on how Schengen rules would apply along the Green Line, despite progress in other technical areas.

The government has positioned Schengen membership as both a national priority and an EU obligation that Cyprus has delayed too long. Kombos noted that joining Schengen is “an obligation arising from our EU membership,” while acknowledging that political developments and crises had previously delayed efforts.

President Nikos Christodoulides announced in January that his administration had “addressed all political concerns regarding the ceasefire line and is now finalizing the technical details required for accession.”

However, opposition skepticism persists alongside technical challenges. Georgiades outlined the infrastructure requirements, explaining that “we’ll need to build a new wing or section” at airports so “one section will be for Schengen-area travel, and the other part of the airport for other international travel.” Cyprus joined the Schengen Information System in 2023 as part of the accession process.

Concerns Regarding Golden Visa are “Complete and Total Political Nonsense”

Disy MP Harris Georgiades, who chairs the House foreign affairs committee, has dismissed concerns about golden visa abuse. By joining the Visa Information System and other shared Schengen databases, Cyprus would actually tighten controls over travelers and help identify bad actors using residency status merely for visa-free EU access. “The whole point of Schengen is precisely to tighten up external borders while relaxing internal controls,” Georgiades argued.

Charles Savva, Managing Director at C. Savva & Associates, who has close government links on the issue, dismissed opposition concerns as “complete and total political nonsense.”

He characterized opposition behavior as automatic negativity, arguing that “when something good happens, the opposition finds something bad about it to complain” and that “the comments they make don’t even make any sense.”

Savva expects Cyprus’s golden visa program to become “the number one EU Golden Visa programme because of its low costs once we’re officially part of Schengen.”

He questioned critics’ objections to increased demand, asking: “And what is the problem exactly with that?” He anticipates Cyprus will join Schengen “as early as the end of this year, as late as the early part of next year” and believes the program will “enjoy a lot of demand once that happens.”

Regarding Green Line concerns, Savva called them “the funniest of all of the comments by the opposition parties,” emphasizing that the government has committed to no recognition of the Green Line through Schengen membership.

He supports Akel’s proposal to eliminate the 5% VAT discount, calling it “a good initiative” while noting there is no discussion of raising the investment threshold.

Kombos has stressed that Cyprus does not seek special treatment or derogations from European law and has described the European Commission as its main partner in the accession process. The minister acknowledged that Cyprus “is paying the price” for not prioritizing Schengen membership in the past and has begun targeted contacts with key member states whose approval Cyprus will need.

The Cyprus government maintains that technical preparations are proceeding smoothly, with officials describing the country as having “one foot inside Schengen” already.

Kombos has highlighted the benefits for Cypriot citizens, including Turkish Cypriots, while rejecting the idea of “commercializing” Schengen accession.