New wave of digital nomads drives demand in real estate and services

Cyprus has issued over 500 Digital Nomad Visas in the past four years, attracting remote workers and their families as part of the government’s wider plan to boost investment and talent. The scheme, launched in 2021, allows non-EU nationals working remotely for foreign companies to live in Cyprus. With an approval rate of over 92%, most applications come from Russia, followed by Israel, the UK, Belarus and Ukraine. Each applicant must show a stable income of at least €3,500 per month, and successful candidates are granted residence for up to three years.

Digital nomads are making a real contribution to the Cyprus economy, with studies showing that each spends between €1,600 and €2,200 monthly. This spending benefits local real estate, telecoms, transport, hospitality and professional services. According to the Cyprus Chamber of Commerce, the scheme could generate more than €10 million annually if fully utilised. At the same time, nomads bring added value through networking and supporting the island’s tech ecosystem.

However, challenges remain. Housing costs have risen sharply in areas popular with digital nomads, while gaps in taxation and social security legislation make Cyprus less competitive compared to countries like Spain, Portugal and Thailand, which offer longer or more flexible visas. Experts warn that without expanding the quota and promoting Cyprus as a hub for innovation, the island risks losing ground in the race to attract global talent.