Cyprus Legislates to Limit Property Purchases by Third-Country Nationals

The Cyprus Parliament is gearing up for a crucial session as it considers new legislation designed to rein in the rapid increase in property acquisitions by third-country nationals. This has become a focal point amid growing concerns about housing affordability and the broader socio-economic impacts on the island.

Rising Foreign Interest in Cypriot Real Estate

Data released by the Audit Office shows that in 2024, over 27% of property and land transactions involved buyers from outside the EU and EEA. Notably, Paphos leads with the highest number of these sales, followed by Larnaca. Early 2025 figures remain consistent, with third-country nationals accounting for approximately 26% of immovable property purchases in the first 11 months.

Details on the Parliamentary Bills Under Review

On January 15, the Parliamentary Committee on Interior will review three legislative proposals aimed at tightening property acquisition rules for non-EU nationals.

AKEL’s Stricter Control Measures

Two proposals from AKEL, led by General Secretary Stefanos Stefanou, focus on rigorous oversight and closing existing loopholes that allow indirect property acquisitions. The first bill seeks to amend the Immovable Property (Transfer and Mortgage) Law to prevent property transactions circumventing restrictions via corporate structures or assignments.

The second AKEL bill modernizes the Immovable Property Acquisition (Aliens) Law, broadening the scope to include all foreign-controlled companies under anti-money laundering rules. This bill also empowers the Council of Ministers to define acquisition criteria and enforce restrictions, including a ban on purchases near the ceasefire line and critical infrastructure sites such as ports, airports, beaches, and military zones.

Limited exemptions for third-country nationals would allow them to own one apartment or house up to 200 sq m, one shop up to 200 sq m, and one office up to 300 sq m.

Third Proposal: Restricting Ownership to One Property per Third-Country National

Proposed by members of the Parliamentary Audit Committee, this bill caps ownership for third-country nationals to a single house or apartment on one plot, whether completed or under construction. It also stipulates that legal entities must be majority-owned (51% or more) by Cypriot, EU, or EEA nationals or companies registered within these regions. Additionally, it outright prohibits foreign nationals from acquiring forest and agricultural lands.

Housing Supply and Affordability: A Growing Priority

The data underscores the urgency: foreign purchases account for roughly one-quarter of all real estate sales, a figure likely understated due to unaccounted transactions through companies with foreign stakeholders. Housing affordability and national interest remain key concerns as Cyprus prepares to take over the EU Presidency on January 1, 2026, putting a spotlight on these challenges at the European level.

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