Cyprus is preparing to introduce a streamlined and stricter legislative framework to better regulate property acquisitions by third-country nationals. This move, currently underway at the House of Representatives’ Committee on Internal Affairs, aims to unify three separate legislative proposals, along with additional suggestions from the Ministry of Interior, into a single robust legal text.
The key goals of this legislative update, as explained by Minister of Interior Konstantinos Ioannou, are to enhance regulatory oversight, close loopholes, and improve transparency. These changes are particularly timely, given the recent uptick in property purchases by investors from non-EU countries, often influenced by ongoing geopolitical tensions in Eastern Europe and the Russia-Ukraine conflict.
Central to the new draft is a stronger role for the Department of Lands and Surveys. The Director would be mandated to reject property transfers if they violate existing restrictions under the Immovable Property Acquisition (Aliens) Law. This aims to halt indirect property acquisitions via local companies or legal entities that currently bypass Cabinet approvals.
Additionally, the proposals seek to protect Cyprus’s agricultural land and rural economy by tightening controls around land use and limiting the cumulative amount of land a third-country investor can purchase.
Although current laws restrict acquisitions by individuals, they often fall short when addressing property bought through companies. The revised framework aims to clearly define all forms of property acquisition, set maximum land size caps, and introduce waiting periods between applications to prevent system abuse.
There are also discussions about imposing restrictions on acquisitions in strategically sensitive zones and planning areas of public interest, balancing national security with economic growth.
The Ministry of Finance has expressed support for the overall direction of these reforms. Meanwhile, the Cyprus Employers and Industrialists Federation suggested a limit allowing third-country nationals to acquire up to two plots or residential units, excluding coastal zones from broad restrictions.
The Chair of the Committee, Aristos Damianou, highlighted that the aim is to present a unified, bipartisan-supported bill to Parliament before the current term ends. This consensus-driven approach signals a collective commitment to safeguarding Cyprus’s property market while maintaining its attractiveness for genuine investors.
For those looking to navigate these upcoming changes, early awareness will be key. Whether you’re seeking affordable apartments or larger plots of land, keeping informed about regulatory trends is essential to making sound property investments in Cyprus.
At INDEX.cy, we pride ourselves on providing transparent, data-driven insights to help you understand the evolving landscape of Cyprus real estate without hype or undue criticism. Stay tuned as we monitor legislative developments to ensure our marketplace remains the go-to platform for reliable, timely property listings and expert reviews.
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