Cyprus’s House of Representatives of Cyprus is starting the new year with one of the most sensitive social issues on the agenda—the regulation of the property market, which in recent years has increasingly been dominated by buyers from third countries. Immediately after MPs return to work in January 2026, discussions will begin on three draft laws aimed at curbing the uncontrolled purchase of homes and land by foreigners. The reason for such measures is serious: the housing crisis is rapidly becoming the number-one concern for Cypriots.
According to data from the Audit Office of Cyprus, more than 27% of all property transactions on the island in 2024 involved buyers from outside the EU. The highest concentration of such sales was recorded in Paphos, followed by Larnaca and coastal areas, where housing prices are rising faster than local incomes. Authorities acknowledge that the real share of foreign-capital transactions may be even higher, as some properties are acquired through Cypriot companies with overseas beneficiaries and therefore do not appear in official statistics.
Parliamentary Initiatives and a Shift Toward Stricter Oversight
The first meeting of the Parliamentary Committee on Internal Affairs is scheduled for 15 January 2026. It will examine two bills submitted by AKEL, as well as another initiative prepared by a group of MPs from different political parties. All proposals share a single goal: to reduce the influence of foreign capital on the housing market and restore affordability for Cypriot families.
AKEL’s proposals call for tighter control over transaction registration and the closure of legal “loopholes” that have allowed foreigners to acquire property indirectly—through companies and various forms of rights assignment. The definition of a “foreign-controlled company” would be expanded to include entities formally registered in the EU but ultimately owned by non-EU beneficiaries. This is intended to stop the practice whereby housing effectively left the domestic market while remaining “European” on paper.
Strict Limits and a Special Regime for Foreign Buyers
One of the key potential changes is a rule under which virtually all transactions involving foreigners would require approval from the Council of Ministers of Cyprus. Under the proposals, a foreign individual would be allowed to purchase only one apartment or one residential house of limited size. The purchase of land near strategically important sites—ports, airports, beaches, and military zones—would be completely prohibited. A total ban on the acquisition of agricultural and forest land by third-country nationals is also under discussion.
Special attention is being paid to companies as well. For a legal entity to be allowed to buy property, a controlling stake would have to be held by citizens of Cyprus, the EU, or the European Economic Area. This measure is designed to eliminate schemes whereby foreign investors acquired property through nominally “European” corporate structures.
Why the Authorities Are Acting Now—and What Comes Next
The push to tighten the rules comes amid rising prices and a shortage of affordable housing, felt most acutely in resort cities. Cypriot authorities stress that housing has become one of the priority topics of the country’s EU presidency, which begins on 1 January 2026. This means the measures currently under discussion could become not only a domestic reform, but also part of a broader European debate on protecting national property markets.
If Parliament approves the proposed changes, Cyprus’s real estate market is likely to undergo a significant transformation. For local residents, this could mean gradual price stabilization and a wider supply of housing; for foreign investors, a move toward stricter and more transparent rules. Authorities are confident that these steps will help maintain a balance between the island’s investment appeal and citizens’ right to affordable housing.