Why Cyprus’ Imminent Entry into the Schengen Zone Could Transform Its Golden Visa Programme

Cyprus is set to join the Schengen Zone in early 2026 – and this news has gained the attention of investors across the world who are considering the Cyprus Golden Visa. This development could have huge implications for the Residence by Investment Market in Europe, given all the advantages being a member of the Schengen zone brings.

What is the Schengen zone?

It is a collection of 27 European countries who have come together to enter an agreement called ‘The Schengen Zone’. This ‘zone’ permits all countries within it to travel freely under unified visa rules. In short, these countries allow borderless travel between one another. This means, for residents of Schengen Zone countries, free movement within the zone, no border checks, meaning much easier business and travel for all members. The Schengen zone was initially established as a unity between certain countries in the EU, however, it has grown to become much more than that. Today, particularly for investors, it represents the freedom to travel and conduct business within Europe. But it isn’t just visa-free travel in Europe that has investors looking to gain residence in Schengen zone countries; there are many other benefits that come with being a member of this coalition. Firstly, it gives investors the opportunity to gain access (often not just for them, but their family too) to better healthcare and educational institutions. It also gives investors access to enhanced business opportunities in the Schengen Zone; often a driving factor in residence by investment. As of September 2025, Cyprus is not yet part of the Schengen Zone, however, it is a member of the European Union (EU). Whilst being a member of the EU does give certain benefits and advantages to its member countries, it is not tantamount to being part of the Schengen Zone. The EU is a mainly political and economic union, concerned mostly with shared laws, trade, and governance, whereas the Schengen Zone focuses on movement of people and highly reduced border checks. Some countries are part of the Schengen Zone but not the EU (such as Switzerland, Norway, Iceland) and others are members of the EU but not the Schengen zone (such as Ireland & Cyprus). Here are two examples of the differences and how they manifest:

• Ireland: In the EU, but not part of the Schengen Zone. EU Citizens can move to Ireland to live and work, however they will face much stricter border checks when travelling.
• Switzerland: Not in the EU, but in the Schengen Zone. Other Schengen members can easily travel in (and out) of the country without border checks, however it is not part of any EU trade or political systems.

But what does all of this have to do with Residence by Investment in Cyprus, or the Cyprus Golden Visa Programme? Let’s start with some background: the Cyprus Golden Visa Programme allows investors to gain residence in Cyprus by making a qualifying investment in Cyprus Real Estate (minimum investment sits at EUR 300,000) and in exchange, receive permanent residence in the country. Other requirements to apply for the Cyprus Golden Visa are:

• Minimum age of 18
• Clean personal background
• Pass due diligence checks
• Proof of source of funds

If Cyprus does, as expected, join the Schengen Zone in 2026, this would mean that Cyprus residence would combine EU membership with Schengen travel freedom, making it an extremely attractive option for investors. This, paired with it’s competitive investment threshold (when compared with similar European programmes like residence in Portugal and residence in Greece) would make it an extremely attractive options for investors looking to gain residence in Europe. But the benefits don’t end there; there are numerous lifestyle and strategic benefits of Cyprus residence too. Firstly, English is widely spoken across the nation, fueled by the strong expat community. Cyprus is also quickly establishing itself as a business hub, with many large companies basing operations from its capital, Nicosia. Finally, there is Cyprus’ strategic location. Although technically situated in West Asia, its cultural makeup and geopolitical climate is much more closely tied to Southeast Europe, and it proves to be a strategic location linking Europe, Asia and the Middle East. All of these factors mean that if Cyprus does join the Schengen zone as expected, we can expect to see a surge of interest in the already popular Cyprus Golden Visa programme. If that is the case, then being one of the first movers could be the best course of action in order to secure your Golden Visa and Schengen Access as fast as possible. If you’re interested in learning more about the Cyprus Golden Visa, or would like to apply for the Cyprus Golden Visa yourself, or would like to discuss anything covered in this blog in more detail, please contact me directly at Selma.brahimi@passportlegacy.com.

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