There is growing discussion in the Cypriot parliament about introducing new restrictions on foreign citizens and companies that are not EU members purchasing real estate. Recently, MPs Zacharias Koulias (DIKO) and Nicos Georgiou (DISY) proposed initiatives to protect the country's land fund and prevent further loss of control over real estate.
The MPs' proposals include
The proposed bills would make radical changes to real estate sales policy. If adopted, foreign individuals and legal entities from non-EU countries will be able to purchase real estate with an area of no more than 200 m². This rule existed until 2010, when Cyprus relaxed its legislation to attract investment.
The authors of the initiative argue that returning to the previous rules is necessary to stop the mass purchase of land and housing by foreign buyers, particularly given the growing interest in Cypriot real estate from investors in the Middle East, Asia, and the former Soviet Union.
National interests are under threat.
We are witnessing an unprecedented process: our land is being turned into an object of speculation. The sell-off of our homeland for short-term gain must stop," said Koulia.
He stressed that the majority of the land fund should belong to Cypriot citizens, as this is the basis of the state's sovereignty and sustainable development.
Koulia also said that he is discussing this issue with Aristos Damianou, the chairman of the Parliamentary Committee on Internal Affairs.
Parliamentarians agree on one thing: restrictions cannot be extended to EU citizens under European law. However, loopholes through which these restrictions can be circumvented must be closed. One example is the registration of companies in EU countries.
The danger of liberalization
MPs emphasize that liberalizing the real estate market after 2010 has played a cruel joke on the local population. Against the backdrop of rapidly rising prices and an increase in foreign capital in the sector, more and more young Cypriots cannot afford housing in their hometowns and villages.
If we do not intervene now, we risk finding ourselves in a situation where the indigenous population will be driven out of their own island. "This is not just a question of economics — it is a question of identity and the future of the country," said Koulia.