The tightening of requirements for investors should not affect the demand of Russians for Cypriot real estate — Kalinka Group.

Despite the changes in legislation on the island, citizens of the Russian Federation and the former CIS countries continue to buy assets in Cyprus, experts of Kalinka Group believe.

Amendments to the legislation establishing requirements for candidates for citizenship in Cyprus will not affect the demand of Russian investors who want to buy real estate in the republic.

According to Kalinka Group analysts, those who have already decided to purchase an asset in Cyprus, such amendments will only push for a deal. For them, the terms of purchase have not changed so significantly as to force them to abandon the purchase.

"For the majority of wealthy Russians, these conditions are acceptable. I don't think we should expect any sharp drop in interest in Cyprus. In my opinion, demand by the end of 2019 will remain at the level of 2018," says Vera Malakhova, Director of Work with Key Clients at Kalinka International.

So far, Russian buyers of real estate in Cyprus can be divided into three categories: 1. families buying houses and apartments for recreation and possible rental; 2. investors wishing to obtain Cypriot citizenship; 3. investors planning to implement development projects on the island.

Last week, the Government of Cyprus approved amendments to the citizenship program for those who invested money in the economy of the republic. The minimum investment amount will remain the same — 2 million euros for residential real estate and 2.5 million for non—residential.

However, the purchase of secondary real estate will now cost 2.5 million euros, not 2 million, as it was before. Moreover, all real estate objects acquired by the investor must have a permit for urban planning.

Also, investors will have to make a mandatory donation to the state fund in the amount of 150 thousand euros. In addition, the closed period for the investor to keep the investment will increase from three to five years.

The requirements for investors themselves are also being tightened: they will have to have a valid Schengen visa. At the same time, he will not be able to apply for citizenship in Cyprus if he was previously refused in another EU country.