Three new legislative initiatives are currently under consideration in the Cypriot Parliament, aiming to introduce stricter rules and control procedures for the acquisition of real estate by citizens of third countries. Two of the proposals were submitted by members of the AKEL party, led by Secretary General Stefanos Stefanou, and the third by representatives of DISY, DIKO, and DIPA.
The main objective is to revise and modernize the existing “Law on the Acquisition of Immovable Property by Foreigners”, in order to eliminate loopholes that allow buyers to bypass restrictions through companies or intermediary schemes.
Key Changes and Objectives
The first AKEL initiative proposes to review the definitions and rules concerning property ownership by foreign individuals and companies. It suggests broadening the definition of “foreign-controlled companies” to include entities whose real beneficial owner is a foreign national. This would prevent foreigners from purchasing land or property through Cypriot or EU-based companies formally registered under local shareholders.
The bill also sets clear limits:
- A foreign individual would be allowed to purchase only one apartment or house up to 200 m², or an office up to 300 m² without special permission.
- Foreign-controlled companies would be subject to similar limits — one commercial property up to 200 m² or an office up to 300 m².
In addition, the proposal includes a ban on purchasing agricultural and forest land, as well as property located near the buffer zone or strategic infrastructure sites. These measures aim to reduce risks to national security and protect environmentally sensitive areas.
New Rules for Property Transfers
The second AKEL initiative proposes amendments to the Law on the Transfer and Mortgage of Immovable Property. Under the proposed changes, the Land Registry Department would be prohibited from registering property transactions — including sales, exchanges, or gifts — that violate the Law on Property Ownership by Foreigners.
This would create an additional verification mechanism to ensure the legality of transactions and prevent hidden ownership transfers through fake contracts or shell companies. The measure seeks to enhance transparency and allow authorities to more accurately identify the real owners of property in Cyprus.
Further Restrictions for Third-Country Nationals
The third bill, co-signed by eight MPs from different political parties, also aims to tighten control over property transactions involving third-country citizens. According to the proposal, such individuals would be allowed to acquire only one residential unit (house or apartment) on a single plot of land.
For legal entities, at least 51% of capital or voting rights must belong to citizens of Cyprus, EU member states, or the European Economic Area.
The bill also reaffirms a total ban on the acquisition of agricultural and forest land, intended to protect national natural resources and prevent speculation in the land market.
The authors emphasize that the goal is not to restrict investment but to increase transparency and protect the market from manipulation. In recent years, there have been numerous cases where foreign investors exploited legal loopholes to purchase large land parcels or entire residential complexes through proxy entities. The new amendments aim to strengthen oversight of capital sources, boost trust in the Cypriot property market, and ensure the sustainable development of the real estate sector.
Outlook and Public Reaction
The discussion of the bills is expected to take place in the coming weeks. Representatives of the business community generally support greater transparency, but they warn that overly strict restrictions might discourage legitimate foreign investors — particularly those from the Middle East and Asia, who are actively investing in residential and commercial properties in Cyprus.
Nevertheless, experts stress that finding a balance between control and investment attractiveness is crucial for the sustainable development of the sector. The government’s aim is not to limit capital inflows but to establish clear and fair rules, ensuring that foreign investment benefits the economy while safeguarding the interests of local citizens.