Cyprus already offers a residency scheme for third country nations investing in property over €300,000 (£242,400 approx), with Russian and Chinese buyers the prime targets, Cyprus Property News reported.
However, Spain is now also targeting the same market, but is offering their residency scheme on property nearly half the price of that in Cyprus.
Nevertheless, Cypriot property prices remain favourable for first time investors, as the global financial crisis has served to drive costs down.
The Global Property Guide reported that at the end of 2011, house prices in Cyprus were already down 14.5 per cent on their peak during the third quarter of 2008, according to figures from the Central Bank of Cyprus.
This means that those previously unable to afford real estate are now able to invest in property in the country.