Cyprus Parliament Set to Strengthen Regulations on Foreign Property Acquisitions

The Cyprus House of Representatives is preparing to discuss new legislative measures targeting the tightening of controls on property purchases by third-country nationals. This comes amid rising concerns about extensive acquisitions and the use of corporate entities to sidestep current foreign ownership restrictions.

Legislative Proposals Under Review

The upcoming debate centers around two bills introduced by AKEL’s general secretary, Stefanos Stefanou, set to be examined by the House Interior Committee starting Thursday. These bills aim to address what the party describes as “unregulated” foreign buying activity, particularly transactions occurring via companies used as fronts.

Key Provisions of the Bills

• Foreign nationals would be prohibited from buying forest and agricultural land, as well as properties near the ceasefire line.
• Foreign buyers would be limited to owning only one residential property—be it an apartment or a house—to prevent multiple acquisitions through indirect channels.
• Companies controlled by foreign nationals, including Cypriot or EU-registered entities under foreign control, will be treated as foreign buyers under the law, closing previous loopholes that allowed avoidance of restrictions.

New Property Size Thresholds for Foreign Buyers

Under the proposed legislation, purchases of one apartment or one house up to 200 square meters, as well as one office property up to 300 square meters, will no longer require ministerial council approval for foreign buyers or foreign-controlled companies.

This update responds to the need for clearer guidelines and streamlined processes, balancing regulatory control with market accessibility.

Legal and Regulatory Enhancements

The bills propose amendments to the Transfer and Mortgage of Immovable Property Law and the Acquisition of Immovable Property (Aliens) Law. These changes would strengthen the Department of Lands and Surveys’ role, ensuring sale contracts and transfers comply strictly with foreign ownership restrictions and enhancing the transparency of beneficial ownership.

Summary of Key Measures

• Expanded definition of foreign-controlled companies to include any with beneficial owners who are non-Cypriots per anti-money laundering criteria.
• Elimination of grey areas in current laws that allowed foreigners to acquire large landholdings.
• Exemptions from ministerial approval for small residential and commercial properties within specified size limits.
• Restrictions on foreign-controlled companies from acquiring multiple commercial properties.
• Explicit bans on foreign ownership of forest land, agricultural land, border-adjacent properties, and sites tied to critical infrastructure.

Potential Market Impact

These legislative changes, if enacted, would mark a significant tightening of Cyprus’ rules governing foreign property ownership. The real estate sector, developers, and investors should carefully monitor developments, as the new framework may affect market dynamics, especially in popular regions such as Nicosia and Limassol.

For those looking for more budget-friendly options amidst this evolving landscape, explore our listings of Cheap Apartments for Sale Cyprus and Cheap Houses and Villas for Sale Cyprus.

Data Insights

In 2025, third-country nationals completed 4,809 property transactions, representing 26.5% of all sales registered at Land Registry offices. This data highlights the notable presence of foreign buyers in Cyprus’ property market and underscores why regulators are seeking to introduce more comprehensive oversight.

Stay tuned to INDEX.cy for the latest updates on property regulations and market trends in Cyprus.