Cyprus to join Schengen in 2026! What Happens Then? Standard Admin / Friday, May 30, 2025 / Categories: Cyprus Company Tax, Cyprus Company Governance, Cyprus Investment Firms and Funds, CYAUSE SERVICES, COMPANY FORMATION, Articles Cyprus has long expressed its intention to join the Schengen Area. When Cyprus will formally join Schengen, several important changes will take place. These developments will affect both individuals and businesses, particularly in sectors such as travel, tourism, immigration, and international services. What is the Schengen Area? The Schengen Area comprises 29 European countries (as of 2024) that have abolished passport and internal border control at their mutual borders, allowing people to move freely across most of the EU. It also maintains a common visa policy for short stays and cooperates on internal security matters. Cyprus and Schengen Although Cyprus joined the European Union in 2004, it is not yet part of the Schengen Area. The main reasons for this delay include ongoing security and technical assessments as well as political considerations relating to the division of the island. What Are the Requirements for Joining Schengen? External Border Management: Up to this point, more than €292 million worth of EU funding has been allocated to Cyprus for border management. Cyprus must demonstrate robust control over its external borders, including advanced surveillance infrastructure, well-trained border personnel, and strict adherence to Schengen entry and exit regulations. Visa Policy Compliance: Cyprus must fully adopt the Schengen Visa Code by issuing standard Schengen visas and integrating into the Visa Information System (VIS), ensuring transparency and coordination in visa issuance and monitoring. Law Enforcement Cooperation: Effective participation in cross-border policing is essential. This includes joint operations with other Schengen members, real-time information exchange and full integration into the Schengen Information System (SIS) for coordinated security measures. Data Protection Standards: Full compliance with EU data protection laws, particularly the General Data Protection Regulation (GDPR), as well as Schengen-specific data security protocols, is required to safeguard personal and security-sensitive information. Current Status Cyprus has completed much of the above stated Schengen acquis alignment requirements and is in its final phases of technical readiness. President of the Republic of Cyprus, Nikos Christodoulides, announced a few days ago, the government’s determination to complete everything by the end of 2025 so that Cyprus can join the Schengen Area in 2026. The timing coincides with the implementation of the European Travel Information and Authorisation System (ETIAS), which will require travel authorisation for non-EU nationals. By joining the Schengen Area, Cyprus positions itself in alignment with this development, enhancing its role as a key entry point to the European Union. What Will Change When Cyprus Joins Schengen? 1. Removal of Border Controls Passport checks for travel between Cyprus and other Schengen countries (e.g., France, Italy, Germany) will be eliminated, making Cyprus more accessible to tourists and potentially increasing tourist arrivals and revenue. 2. Schengen Visa Implementation Cyprus will fully adopt the Schengen Visa system, allowing tourists and business visitors to enter Cyprus with a visa issued by any other Schengen member. Service providers, especially in legal, accounting, travel, and immigration sectors, will need to align their practices with new visa procedures and cross-border compliance rules. 3. Stronger Border Management at External Borders Cyprus will strengthen controls at external borders (e.g., Larnaca and Paphos Airports and seaports) under the rules of the Schengen Border Code. The Schengen Information System (SIS) and Europol cooperation mechanisms will be used more actively for security screening and cross-border policing. 4. Impact on the Green Line One of the most complex areas will be managing the Green Line, the demarcation line dividing the Republic of Cyprus and the Turkish-occupied northern area. While the Green Line is not considered an external border of the EU, its control may be intensified, and additional checks could be introduced to ensure compliance with Schengen protocols. Legal and Regulatory Adjustments Cyprus will need to amend or align certain national laws with EU Schengen regulations, including: The Aliens and Immigration Law and relevant Police Acts. Legislative alignment regarding visa issuance, biometric data collection, and data protection protocols as required under the Schengen acquis. Expanded training and oversight mechanisms for border control authorities. Benefits expected to gain from Cyprus joining Schengen Area Seamless Travel Across Europe: EU citizens will benefit from unrestricted movement to and from Cyprus for work, education, and tourism, while third-country nationals holding a Schengen visa will be able to enter Cyprus without needing additional documentation. Boost to Tourism and Business Travel: The elimination of border controls and streamlined visa procedures will enhance the travel experience for international visitors, making Cyprus a more attractive destination for both leisure and business. Increased Foreign Investment and Trade: Easier movement of people and goods will help strengthen economic ties with other EU member states, attracting foreign direct investment and facilitating cross-border commercial activity. Opportunities for Business Growth: Companies engaged in international trade, recruitment, legal and financial services will benefit from reduced bureaucracy and harmonised compliance processes across Schengen countries. Growth in Real Estate and Investment Migration: Cyprus is likely to see increased interest from third-country nationals seeking access to the Schengen Zone through property investment and residence-by-investment schemes. Access to Broader Legal Protections: Individuals and companies will enjoy improved access to judicial remedies and legal protections under the unified Schengen legal framework. Strengthened Internal Security: Integration into the Schengen Information System (SIS) and enhanced police cooperation will help Cyprus improve border security and combat cross-border crime more effectively. Alignment with EU Digital and Border Systems: Cyprus will participate in new EU-wide initiatives such as ETIAS (European Travel Information and Authorisation System), further aligning the country with modern European travel and security protocols. Conclusion The legal framework for Cyprus’s accession to the Schengen Area provides clear guidance: once criteria are met, accession is not a gift, it is a right. Cyprus accession to the Schengen Area will mark a significant milestone in its EU integration journey. It will open up new economic opportunities, enhance mobility, and strengthen security frameworks, while also presenting administrative and political challenges that must be addressed carefully. 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Our network covers almost 40 jurisdictions with over 2,000 professionals, it supports more than 10,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and processes at least 170,000 payslips globally. CYAUSE Audit Services Ltd is also a member of BKR International one of the biggest US Accounting Associations of the word and the 3E Accounting Network, an international accounting network which originates from Hong Kong and has more than 80 members from all over the world. Contact Us If you would like us to assist you with your investment firm or fund please contact us at enquiries@cyprusaccountants.com.cy or call us at +357 22 336 309. Learn More about Cyprus Corporate Environment Information about CYAUSE Audit Services and the Cyprus Corporate & Tax System can be obtained from our Website or our YouTube channel which provides valuable information about the Corporate & Tax Environment of Cyprus. 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