Cyprus Moves to Restrict Property Purchases by Third-Country Nationals Amid Housing Concerns

The Cyprus Parliament is gearing up for an active legislative session in early 2026, focusing on new measures to limit property acquisitions by third-country nationals. This move comes in response to mounting concerns about housing availability and affordability, which have become critical socio-economic challenges for the island.

Data from the Audit Office reveals that over 27% of all property transactions in 2024 involved buyers from non-EU countries, with hotspots in Paphos and Larnaca. Such trends have prompted policymakers to reevaluate regulations, particularly given the impact on local housing markets and broader economic and security considerations.

Upcoming Parliamentary Discussions

The Parliamentary Committee on Interior will review three legislative proposals on January 15, marking the first session following the holiday break. Two bills originate from AKEL’s General Secretary, Stefanos Stefanou, while the third is a collaborative effort by members of DIKO, DISY, and DIPA from the Parliamentary Audit Committee.

AKEL’s Legislative Initiatives: Tightening Property Acquisition Rules

AKEL is advocating for more robust restrictions aimed at safeguarding housing access for low and middle-income residents and curbing unchecked land sales. Their first bill proposes amendments to the Immovable Property (Transfer and Mortgage) Law to prohibit the land registry from authorizing property transfers that violate existing Alien Acquisition laws. This aims to close current loopholes allowing indirect acquisitions via corporate entities or assignment contracts.

Strengthening the Definition of Foreign-Controlled Companies

The second AKEL proposal seeks to modernize the Immovable Property Acquisition (Aliens) Law by eliminating provisions allowing indirect purchases without Cabinet oversight. It broadens the scope of “foreign-controlled companies” to include any entity with a beneficial owner classified as a third-country national under anti-money laundering standards.

This measure would also ensure that Cypriot or EU-registered companies influenced by foreign interests are subject to the same acquisition restrictions, effectively closing avenues for indirect property purchases. Additionally, the Council of Ministers would set detailed criteria for approval processes, evaluating each acquisition application on a case-by-case basis.

Exemptions are narrowly defined, permitting third-country nationals to buy only one apartment or house up to 200 square meters, one shop of the same size, or an office up to 300 square meters. Notably, a comprehensive ban is proposed on any property transactions near sensitive locations such as the ceasefire line, ports, airports, beaches, and military sites.

Third Proposal: One Property per Purchaser and Ownership Controls

The bill by the Parliamentary Audit Committee members restricts third-country nationals to owning a single residential property on any plot—whether completed or under construction. It also introduces ownership thresholds for companies, requiring majority control (at least 51%) to rest with Cypriots, EU, or EEA nationals or established companies within the European Economic Area.

Moreover, this proposal outright prohibits foreign buyers from purchasing forested or agricultural lands, a significant step toward preserving Cyprus’s natural resources.

Housing Policy: A National and EU Focus for 2026

Audit Office statistics highlight that the reported 27% share of foreign buyers likely understates the volume due to transactions involving Cypriot companies with foreign stakeholders. Authorities have recognized these challenges, making housing a priority as Cyprus prepares to assume the EU Presidency in January 2026.

This leadership role positions Cyprus at the center of broader EU discussions addressing affordable housing, supply shortages, and speculative investment impacts. For those interested in exploring residential options amid these developing policies, our Affordable Apartments in Cyprus and Plots of Land for Sale listings could provide valuable insights into market opportunities.