Upcoming Parliamentary Debate on Foreign Property Acquisition Controls in Cyprus

Cyprus’ parliament is preparing to review new legislative proposals designed to tighten regulations surrounding property acquisitions by third-country nationals. The move comes amid rising concerns about widespread purchases and attempts to circumvent existing limitations through business entities.

Focus of the Proposed Legislation

The initiative, scheduled for discussion at the House Interior Committee starting Thursday, builds on two bills submitted by AKEL general secretary Stefanos Stefanou. The primary objective is to address what AKEL characterizes as the “uncontrolled” buying of real estate by foreigners, especially when transactions occur via companies used as fronts.

Key restrictions suggested include banning foreigners from acquiring forest and agricultural lands, as well as properties located near the ceasefire line. Additionally, the bills aim to limit foreign buyers to acquiring only one residential property — whether an apartment or a house — and to close loopholes that allow multiple property purchases using corporate structures.

Clarifying the Status of Foreign-Controlled Companies

Significantly, the bills define companies with foreign control, including those registered in Cyprus or the EU but ultimately owned by non-nationals, as “foreigners” subject to acquisition restrictions. This clarification seeks to prevent evasion of property ownership rules through indirect corporate ownership.

Defined Property Size Limits and Approval Process

Under the proposed legal framework, foreign individuals and entities would no longer need ministerial council approval for transactions involving:

• One apartment or house up to 200 square meters
• One office space up to 300 square meters

This threshold ensures simpler acquisition processes for limited residential or commercial properties while maintaining control over larger investments.

Legal Amendments and Transparency Enhancements

The draft legislation modifies the Transfer and Mortgage of Immovable Property Law to tighten compliance with restrictions outlined in the Acquisition of Immovable Property (Aliens) Law. This will prevent unauthorized property transfers and sales registrations where limitations apply, while improving transparency concerning beneficial ownership.

Summary of Core Measures

• Expanded definition of “companies controlled by foreigners,” including those with ultimate foreign beneficial owners as defined by anti-money laundering rules
• Elimination of existing legal ambiguities that allow foreigners to acquire extensive landholdings
• Ministerial approval exemptions for limited residential and commercial property purchases within specified size limits
• Restrictions on foreign-controlled companies buying multiple commercial properties
• Complete prohibition on foreign ownership of forest lands, agricultural plots, properties near the ceasefire line, and zones linked to critical infrastructure

Market Impact and Statistics

If passed, these measures would significantly reinforce Cyprus’ property ownership framework, impacting investors, developers, and stakeholders in the real estate market. Notably, in 2025, third-country nationals accounted for 4,809 property sales, representing 26.5% of the total market transactions, according to Land Registry data.

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