The EU Schengen Zone allows speedy travel from one country to another. It's so easy that consulates received almost 17 million applications for visas in 2019 alone. Yet many Cypriots remain unaware of the Schengen Area.
As of April 2021, Cyprus is not part of the Schengen Zone. However, the process of joining the Schengen Zone has started.
This means that national visas issued by the Embassies of Cyprus are valid for Cyprus only. They do not permit the holder to enter other Schengen zone countries.
The European Union (EU) provides standardized laws for 27 different countries. Members share a single market in which all members act as one, allowing for free movement of goods. The EU applies standardization to travel, permitting free movement of people.
The Schengen Area (or Schengen Zone) is a border checks-free area that allows free movement for nearly all EU citizens and third-country nationals who have a Schengen visa. You can travel from one country to another without passport checks or other formalities.
Non-EU citizens traveling to Europe can apply for a Schengen visa. This allows them to travel to any member for 90 days.
Also, the EU is implementing a new system called the European Travel Information and Authorization System (ETIAS). Under ETIAS, non-EU citizens must complete an online application with a biometric passport. ETIAS is expected to be active by the end of 2022.
Travelers can apply online, and the process should not take longer than 10 minutes. Visas last for three years and allow for multiple entries during that time.
The Schengen Countries Zone also dictates cooperation amongst national police and judicial systems. Police from one country can pursue a suspect into another. Courts allow for the extradition of suspects quickly.
Not all EU nations are included in the Schengen agreement: Cyprus, Bulgaria, Croatia, Romania, and Ireland. Also, some are in the Zone without being EU member countries: Iceland, Norway, Switzerland, and Liechtenstein.
Cyprus joined the EU in 2004. The country adopted the Euro in 2008, creating economic standardization. But it hasn't joined the Zone due to continued disputes over Cyprus's national borders.
As an island nation, Cyprus is hard to access. It would receive far fewer benefits from the Zone than nearly all European nations. However, it is expected to still see substantial gains.
Almost four million people visited Cyprus in 2019. The total revenue from tourism totaled 2.7 billion Euros. Income from tourism accounts for more than 20 percent of the country's GDP.
Making access to Cyprus easier will increase tourism. When Switzerland joined the Zone, its tourism numbers shot up.
Cyprus will see an increase in immigration and cross-border trade. Bilateral trade between two members of the Zone increases by .09 percent annually.
Border controls in and of themselves are costly. Waiting in long lines means there is less time to work, which drives down productivity. Workers can head directly into Cyprus and work right away, driving money into the local economy.
If Cyprus joins Schengen, real estate prices will increase. This is because the demand will soar. Non-nationals will probably have a majority of the country's real estate, developing it into high-end projects.
It is unclear how high prices will rise. The increase depends on many factors, including the continuing COVID-19 pandemic. Returns on investments may vary, but investors can expect some sort of profit.
Nicosia and Limassol are the two biggest metropolitan areas in the country. Both are cities on the rise, with fast-growing cultural and industrial hubs. Purchasing and selling real estate in either area will likely lead to substantial profits.
Also, an important aspect that will have an effect on the increase in demand will be the following. Once Cyprus joins Schengen members the permanent residency of Cyprus will be equal to a Schengen visa. This allows passport-free travel in the zone and will be very attractive for foreigners, and thus the demand for residency by property investment is expected to increase.
In September 2019, Minister of Foreign Affairs Nikos Christodoulides announced that Cyprus had started the process of joining and getting Schengen membership. All EU member states are required to apply (in case they wish to join) so that the evaluation process can start.
States must meet a number of requirements, but Cyprus is meeting them. In November, experts with the EU assessed whether Cyprus could protect travelers' personal information. They concluded that the country could.
The country now must show that it can maintain border integrity and security. This is especially important because Cyprus is an island. Cypriots cannot pool resources with others to protect the border.
It is unclear when Cyprus will receive formal approval to join.
It is possible to enter Cyprus with a valid Schengen Visa (category C, double or multiple entries). This type of visa is regarded as identical to a national entry visa. It allows transit or entry and stay for up to 90 days in a 180 day period.
Cyprus is about to join the Schengen Zone soon. The Schengen Zone is a union of more than two dozen European countries. The Cyprus-Schengen relationship will fuel tourism and increase trade. Real estate demand and prices are expected to rise. The application process is ongoing, but Cyprus has passed its first requirements.