Cyprus’s passport ranks 14th on the Guide Passport Index. It provides visa-free access to 177 countries.
For those who want Cypriot permanent residency, the Cyprus Investment Program grants long-term residence to foreigners through real estate investment.
Getting Cyprus residence permanent residence requires spending a minimum of €300,000 on property. Up until its suspension in 2020, Cyprus also had a citizenship by investment (CBI) program for €2 million.
Private Equity and VC in Cyprus
Cyprus has made significant efforts to boost its private equity and venture capital sector, with many efforts backed by the government directly.
Dozens of VC firms have set up shop in Cyprus over the past decade to provide seed and expansion capital. There’s an increasing trend of incubators/accelerators taking part in the local startup market.
The Cypriot government has created policies designed to foster innovation. Initiatives like the Cyprus Research and Innovation Foundation (RIF) grant capital to innovative projects, often without many strings attached.
Cyprus Investment Funds (CIFs), on the other hand, offers a way to invest in a collection of early-stage and growth-stage companies.
Here in Cyprus, you won’t find any shortage of startups. The country’s tech, e-commerce, and healthcare sectors are all especially popular for VC funds.
Should You Invest in Cyprus?
Cyprus’ Mediterranean setting offers many advantages, which makes it an attractive place to enter the European market while still having a foothold in Asia.
The country’s unique position sets it as a bridge between Europe, Asia, and even Africa. Meanwhile, Cyprus has a stable political and juridical framework… especially compared to most countries on the mainland towards its east.
With all of that said, Cyprus’ economy has constraints. It’s small nation of barely over a million inhabitants. You aren’t going to become a billionaire by selling consumer products in bulk here.
By investing here, you can generally expect the same returns as in any other developed European market. Cyprus isn’t an emerging economy anymore and you simply don’t have the same potential you would in Southeast Asia, for example.
Lastly, the ongoing territorial dispute with Turkey is also a concern – although it’s unlikely anyone would try anything with an EU member state. At least for now.
Cyprus is certainly worth considering for the right type of investor. It’s positioned in the right spot for tourism and trade. The crypto sector’s legality makes anything related to the blockchain promising as well.
That said, you’re still dealing with a small developed market. You’ll eventually face limits on growth because of that.
