President Nikos Christodoulides stated that Cyprus is well on its way to joining the Schengen Area, with all technical issues being resolved by 2025.

Cyprus is one of only two EU member states, alongside Ireland to not be part of the Schengen Area due to having no land boarders with other EU countries. However, Cyprus could be joining the Schengen in 2025, with President Nikos Christodoulides stating:

“We have addressed all political concerns regarding the ceasefire line and are now finalizing the technical details required for accession,” with a team at the foreign ministry hard at work to oversee all the details.

The Schengen Zone

The Schengen Area spans over 4 million square kilometers and comprises 29 countries with a population of 420 million. While all but two EU member states (Cyprus and Ireland) are part of the Schengen Zone, Cyprus is set to join new members, Romania and Bulgaria in 2025.

The Push to Join the Schengen Area

Christodoulides has made it clear why all the effort has been made for Cyprus to join the Schengen Zone. Cyprus joining the Schengen Area could have a critical impact on tourism for the country.

The government of Cyprus is hard at work to improve foreign policy, partnering Cyprus with some of its neighboring countries. Stating:

“I believe it is important to have strong ties with all neighboring countries, which are a source of tourism,”

While Cyprus has been a leader in the tourism industry, particularly for UK visitors, the country believes there is space for further development. So much so, that the president is urging young Cypriots to seek work in the growing tourism sectors. There is rapid growth, seen with the expansion of airports and Cyprus signing on to host Fiba 2025.

Christodoulides also announced that Cyprus is in the final stages of an agreement between the US and the country, whereby Cypriots would no longer need a visa when visiting the US, making travel even more accessible to Cyprus residents.

Not only would joining the Schengen improve the country’s political standing, but it could be the final push in global recognition, for Cyprus being a tourism powerhouse.

It’s not only the thriving tourism sector that make Cyprus so popular. The country is full to the brim with advantages for those looking to invest in Cyprus, including:

  • Strategic location: Positioned at the crossroads of Europe, the Middle East, and Africa, Cyprus is ideal for trade businesses with well-developed ports and markets. It is a thriving base for multinational companies.
  • Economic stability: Cyprus has rebounded strongly from the early 2010s financial crisis. Key industries like shipping, tourism, and finance drive growth. A reformed banking system offers a safe investment environment. With a $32.19 billion GDP in 2023 and declining unemployment.
  • EU membership: As a member of the European Union, Cyprus enjoys unrestricted trade within the EU, direct shipping routes, convenient travel, and extensive business opportunities.
  • Cyprus taxes: Cyprus offers a low corporate tax rate of 12.5%, among the lowest in the EU. With over 65 double taxation treaties and tax incentives in sectors like tech and shipping, making Cyprus taxes highly advantageous for investors.
  • Quality of life: Cyprus provides a safe and welcoming environment, excellent education, and affordable healthcare for expats. Year-round sunshine, stunning landscapes, and low crime rates make it attractive for retirees and families moving to Cyprus.
  • Residency opportunities: Options like the Cyprus Golden Visa offer a path to EU citizenship. Here, investors make a qualifying investment into the country through property, company formation, or a fund association. Overall, Cyprus joining the Schengen Area will improve investment opportunities.

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What Joining the Schengen Area Would Mean for Cyprus

Cyprus’ upcoming accession to the Schengen Area in 2025 will bring significant opportunities for investors, including:

  • Enhanced EU market access: As part of the Schengen Area, Cyprus will benefit from the free movement of goods, services, and people across all 27 EU countries. This will create a seamless business environment, especially for companies operating across Cyprus and the EU.
  • Increased tourism and real estate investment: Schengen membership is likely to boost tourism and attract more long-term residents to Cyprus. Investors in real estate can expect higher demand for rental properties, particularly in popular areas like Limassol, Paphos, and Nicosia.
  • Stronger business environment: Cyprus’ strategic location, favorable tax policies, and access to the EU market will make it an even more attractive base for international businesses. The Schengen Area’s open borders will enhance Cyprus’ standing as a hub for trade and investment.
  • Easier access for EU & Non-EU investors: Schengen membership will simplify travel and investment for non-EU investors, encouraging more foreign direct investment (FDI). The ability to move freely within the EU without additional visa requirements will make Cyprus even more appealing for international business, particularly in sectors like technology, finance, and shipping.