On Thursday, February 5, the Cyprus Parliament confirmed its intention to introduce amendments to the law by May 2025 that will significantly restrict the acquisition of real estate by foreign citizens and companies. The amendments are planned to be approved before the dissolution of the House of Representatives in connection with the upcoming parliamentary elections, which underscores the political and public significance of the issue.
At the moment, there are three draft laws concerning restrictions on the sale of real estate to foreigners. Interior Minister Konstantinos Ioannou proposed combining all initiatives into a single package and reviewing them together with the government bill in order to avoid legal conflicts and speed up the decision-making process.
Why the current law is considered outdated
Both deputies and government representatives agree that the current legislation regulating the purchase of real estate by foreign citizens is hopelessly outdated. In its current form, it contains numerous loopholes and effectively does not create real restrictions, allowing formal requirements to be bypassed through corporate schemes and nominee owners.
According to the proposed changes, the Director of the Land Department will not be able to approve purchase agreements or transfers of ownership rights if the transaction falls under the new restrictions. This is intended to strengthen oversight and reduce the practice of formal compliance with the law without real substance.
National security and sensitive zones
Some deputies are already calling the current situation a national security threat. Representatives of the AKEL party point to the growing number of transactions involving foreigners near airports, military facilities, the “green” line, and coastal areas. Such transactions cause particular concern against the backdrop of the unstable international situation in the Eastern Mediterranean region.
The planned amendments provide for the introduction of special restrictions in certain urban zones and areas recognized as sensitive from a security perspective. It is expected that the list of such territories will be approved at the government level and regularly reviewed.
Who is buying up real estate in Cyprus
In a recent report by the Auditor General of Cyprus, it is noted that an increasing number of real estate transactions involve citizens from third countries outside the EU. Among the most active buyers are people from Lebanon, Israel, Russia, and China. According to the results of 2025, foreigners accounted for more than a quarter of all property sales on the island, and experts believe this figure is underestimated because it does not include EU and Cyprus companies with foreign beneficiaries.
It is important to note that companies registered in Cyprus or the EU but controlled by non-European owners are formally considered local entities, which until now allowed restrictions to be bypassed.
Geopolitics and new control measures
The Interior Minister linked the growing interest of foreigners in Cypriot real estate to geopolitical events in the Middle East, as well as the ongoing conflict between Russia and Ukraine. Against the background of global instability, Cyprus is seen as a safe jurisdiction for capital preservation and business relocation.
Among the measures under discussion is the introduction of time intervals between applications for property purchases by foreigners. This is intended to prevent abuse when a property is allegedly acquired for personal residence but then used for commercial purposes. Additionally, the idea of quantitative limits is being discussed: representatives of the Employers and Industrialists Federation proposed setting a limit of no more than two land plots owned by one foreign individual.
What this means for the Cyprus real estate market
The expected changes may significantly affect the Cyprus real estate market in 2025, especially in the investment and luxury housing segments. Experts predict increased interest in long-term rentals, as well as a strengthened role for local buyers and EU residents. At the same time, the final wording of the law will be crucial for balancing the protection of national interests and maintaining the country’s investment attractiveness.
The reform of real estate legislation is becoming one of the key political and economic issues in Cyprus, and its consequences will affect both foreign investors and the entire market as a whole.