Cyprus is advancing towards a streamlined legislative approach aimed at tightening controls on the acquisition of real estate by third-country nationals. This move comes after in-depth discussions within the House of Representatives’ Committee on Internal Affairs, highlighting the need for a unified and more transparent framework.
The proposed legislation intends to merge three separate draft laws into a single comprehensive bill, integrating suggestions from the Ministry of Interior. The primary goal is to enhance regulatory oversight, close existing loopholes, and reinforce transparency amid an observed surge in property acquisitions driven largely by geopolitical tensions, including the ongoing conflict between Russia and Ukraine.
Konstantinos Ioannou, Minister of Interior, affirmed that the updated legal framework will introduce stronger safeguards, clearer eligibility criteria, and more robust control measures. The initiative aims to mitigate risks associated with property transfers while ensuring these regulations support economic stability and social cohesion.
A pivotal aspect of the draft legislations involves empowering the Director of the Department of Lands and Surveys to reject transactions that violate the Immovable Property Acquisition (Aliens) Law. This provision seeks to prevent unauthorized property acquisitions by third-country nationals, particularly through indirect means such as the use of Cypriot companies or legal entities.
Furthermore, the proposals suggest eliminating legal routes that bypass mandatory Cabinet approvals, protecting agricultural lands and rural economies from excessive foreign ownership. The reforms also propose modernizing acquisition procedures to better serve the public interest.
Existing legislation currently places clear restrictions on individual natural persons but lacks comprehensive regulation of legal entities. This gap has created loopholes exploited for property acquisitions. To address this, the Ministry of Interior is preparing a revamped framework to clarify definitions around property acquisition and set maximum landholding limits for third-country nationals.
Additional regulatory ideas include imposing waiting periods between consecutive applications to deter process misuse and possibly restricting acquisitions in sensitive areas, including certain planning zones and locations of heightened security concern.
The committee’s chair, Aristos Damianou, indicated a consensus-driven approach aiming for the bill to pass with broad political backing before the current parliamentary term ends. Meanwhile, the Ministry of Finance has expressed support for the overall tightening measures. The Cyprus Employers and Industrialists Federation suggested some flexibility by allowing third-country nationals to purchase up to two properties, excluding coastal zones from broad restrictions.
As these changes progress, individuals seeking to invest in Cyprus’s property market, including options like affordable apartments or plots of land, should stay informed about evolving regulations to ensure compliance and protect their interests.
This legislative update reflects Cyprus’s commitment to balancing openness to foreign investment with the protection of national and local interests. Investors and buyers can expect a more regulated environment that promotes fairness and transparency across the real estate market.
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