In an era when remote work and flexible employment are becoming the global norm, the concept of the "digital nomad" has emerged as a distinct social and professional category. Thousands of online professionals move between countries, choosing the most comfortable living and working conditions. Many countries have developed special visa programs to attract these professionals. Cyprus has joined this trend, actively promoting its Digital Nomad Visa in recent years to secure its status as a promising European center for remote professionals.
The program is aimed at non-EU and non-EEA citizens who provide services to companies or clients outside Cyprus. In return, they receive the right to live on the island with their families. According to the Ministry of Migration and the Cyprus Chamber of Commerce and Industry (CCCI), the program has already produced noticeable results.
More than 500 visas have been issued in the last four years
From the program's launch until June 30, 2025, Cyprus issued 518 digital nomad visas, as well as 389 permits for applicants' family members. The greatest interest was recorded in 2022–2023, when 681 new applications were submitted. However, there has been a decline since then, which experts attribute to uncertainty in the global market and competition from Portugal, Croatia, and Estonia.
Interestingly, many digital nomads prefer to extend their stay on the island beyond their original plans: 306 applications for an extension have been registered. The approval rate remains high, exceeding 92%.
Who chooses Cyprus?
Russian citizens were the main applicants, accounting for over 687 applications. Second place goes to specialists from Israel, followed by citizens of the UK, Belarus, and Ukraine. A similar trend is seen with visas for family members. Experts note that Russians traditionally view Cyprus as a comfortable destination due to its linguistic and cultural similarities, as well as its developed infrastructure.
Economic Impact: Over €10 million per year
According to the Global Immigration Index from Ernst & Young (March 2025), the average monthly expenditure of a digital nomad in Cyprus ranges from €1,600 to €2,200. If the program is implemented effectively, the direct annual benefit to the economy will exceed €10 million.
However, this is only part of the effect. Digital nomads actively use local services, rent accommodations, develop the coworking market, and contribute to the growth of IT services, accounting, and tax consulting. The real estate, restaurant, telecommunications, transportation, and wellness sectors benefit the most. Additionally, 74% of digital nomads are freelancers or self-employed, creating new networking and project opportunities with local businesses.
Challenges include rising prices and pressure on infrastructure
Along with the advantages, the program has challenges as well. In cities popular with digital nomads, such as Limassol and Paphos, housing prices have increased by 18–22% over the past two years. This is already affecting the availability of housing for local families and students.
Other issues include a shortage of international schools and kindergartens, the need to modernize digital government services, and the limit of 500 visas per year, which seems too strict for a rapidly growing market. Experts also note that the lack of clear international tax agreements creates barriers for some professionals considering long-term residence in Cyprus.
Prospects
Today, Cyprus must rethink its strategy. To compete with countries like Portugal and Estonia, Cyprus needs to strengthen its branding as an innovative European hub, not just a tourist destination. Key steps include expanding visa quotas, streamlining procedures, establishing zones for digital nomads with affordable housing and services, and developing a centralized Work From Cyprus portal offering information and support to foreign professionals. Successful implementation of this strategy would allow Cyprus to transition from passive participation in the global trend to leadership in the digital transformation of the economy.