The Cyprus Property Developers Association (CPDA) has urged lawmakers to exclude real estate investments—whether for residential, holiday, or investment purposes—from the recently proposed Foreign Direct Investment (FDI) screening law. This request was made in an official letter to the Parliamentary Committee on Finance, emphasizing the need to maintain an open and appealing market for property buyers.
Yiannis Misirlis, President of the CPDA, confirmed the association’s support for a national FDI screening mechanism, highlighting its role in aligning Cyprus with EU standards (EU Regulation 2019/452). He noted how the screening law boosts Cyprus’ image as a transparent and secure investment destination, vital for attracting quality investments beneficial to the local economy.
However, Misirlis cautioned that the mechanism must strike a balance—ensuring transparency and credibility without stifling investment activity. To this end, CPDA proposes a specific exemption for property deals related to housing, holiday homes, or standard investment purposes to keep Cyprus attractive for investors exploring Cheap Houses and Villas for Sale Cyprus and other real estate options.
Lisa Solonos, Director of the Association of Credit Acquiring Companies and Credit Facility Management Companies (SEDC), expressed concerns about the current draft of the FDI legislation. She emphasized that vague definitions and unclear timelines may cause significant delays in property transactions, creating legal uncertainty and risking investor dissatisfaction. The current wording could overwhelm authorities with screening applications, likely deterring potential foreign investors, who may instead turn to nearby markets.
The draft legislation, which targets foreign investments exceeding €2 million, continues to be discussed article by article, with a plenary vote expected by October. Originally introduced in mid-2022—during a high-profile attempted acquisition of the Bank of Cyprus by a US investor—the bill seeks to establish a National FDI Screening Mechanism. This framework will review foreign investments particularly in critical infrastructure, with oversight managed by the Ministry of Finance and involvement from relevant ministries depending on the investment sector.
Key highlights of the bill include retroactive application of up to 15 months to void investments from questionable sources, while exempting ships under Cyprus’ unique maritime regime. Floating LNG units, however, remain under scrutiny. The bill outlines mandatory notification rules, criteria for screening, review procedures, and the Ministry of Finance’s powers as the competent authority.
For buyers and investors looking around Cyprus, the bill’s evolution is critical, especially when considering diverse options like Affordable Apartments or strategic Plots of Land for Sale. Staying informed about regulatory changes ensures smarter investment decisions.
Support
Information
