Cyprus Is One Step Closer to Schengen: What It Means for Property Investors in 2025

26 May 2025

A Borderless Future: Why Cyprus’ Schengen Progress Matters for Real Estate

At Square One, we closely monitor developments that shape the future of Cyprus—and the 2025 progress toward joining the Schengen Zone is a turning point we’ve long anticipated.

As of this year, Cyprus has successfully passed the final technical evaluations for Schengen membership, and official sources from Brussels indicate that the country is now on the verge of full accession.

While the political ratification process is still underway, the EU's confidence in Cyprus’ readiness sends a strong signal: the borderless era is near.

And for international property buyers and investors, this opens the door to a whole new level of opportunity.

Cyprus and the Schengen Zone: A Timeline of Progress

Cyprus joined the EU in 2004 but has remained outside the Schengen Area for two decades, largely due to border complexities and geopolitical considerations. That’s changing.

In 2024, Cyprus integrated the Schengen Information System (SIS) and biometric checks across its points of entry—two of the most critical technical requirements. By early 2025, EU officials confirmed that Cyprus had passed all final checks.

The only step left is unanimous political approval from current Schengen member states, expected by the end of 2025.

This would allow for unrestricted travel to and from 27 other European countries—boosting tourism, business, and of course, property market activity.

What This Means for Property Investors

At Square One, we’ve seen firsthand how global events influence local markets.

The prospect of Cyprus joining the Schengen Zone is already accelerating demand in real estate, especially among foreign nationals seeking a strategic base within Europe.

Here’s how this development is impacting the property market:

Stronger International Demand: Investors from Israel, the UAE, and non-EU countries are looking to secure property now, before prices surge post-accession.
Residency + Travel Advantage: Cyprus’ existing Permanent Residency programme is already attractive. Add Schengen access, and it becomes one of the most valuable property-based residency programmes in the EU.
Boosted Rental Yields: Tourism is expected to rise substantially once Schengen is active—especially in hotspots like Limassol, where short-term rental demand is already strong.
Capital Growth: Investors are betting on capital appreciation, especially for off-plan and early-stage developments in prime areas.

Featured Project: Vacasa Residences – Last 5 Units Available in Agios Nicolaos

As Cyprus approaches Schengen accession, developments close to the city centre and beach are in extremely high demand.

One standout opportunity is Vacasa Residences in Agios Nicolaos — a boutique development of just 9 luxury units, offering a rare combination of city convenience, modern design, and lifestyle appeal.

With only 5 units remaining, Vacasa features spacious two-bedroom apartments and exclusive penthouses with optional private pools and rooftop gardens. Located just 1km from the beach and within walking distance of key amenities, it's ideal for both short- and long-term rentals.

Key Highlights:

7% Rental Guarantee for 3 Years
Two-Bedroom Apartments & Penthouses
Optional Private Pools & Roof Gardens
Modern Architecture & High-End Finishes
From €292,000 to €440,000 + VAT
Turnkey Investment with Full Property Management

Explore the project: Vacasa Residences

Why Invest Before Accession?

Timing is everything in real estate. The window to invest before Cyprus officially enters Schengen is narrowing, and with increased buyer activity forecasted, prices are expected to climb.

At Square One, our off-plan projects across Limassol and Paphos are already attracting attention from buyers positioning themselves ahead of the shift.

With investment-friendly pricing, full rental management, and strategic locations, our developments are designed to maximise yield and capital appreciation in a post-Schengen landscape.

Explore Our Schengen-Ready Investment Properties

We’ve always believed in making Cyprus real estate accessible, profitable, and future-proof. Our portfolio includes over 30 carefully located projects, many of which are already seeing increased traction from international investors preparing for a borderless Europe.

Browse Investment Projects

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Disclaimer

This article is provided for general information purposes only and does not constitute legal or tax advice. Always consult a licensed tax advisor for personalised guidance.

Article by: Angelo Coralini