In the Parliament of Cyprus, discussion has begun on bills aimed at restricting the sale of real estate to citizens of third countries. The initiative sparked a heated debate: a number of MPs openly called the situation a matter of national security. The Chairman of the Parliamentary Committee on Internal Affairs, Aristos Damianou, said that the goal of the discussions is to combine all existing proposals into a single legislative text and put it to a vote before the dissolution of parliament in connection with the May parliamentary elections.
At the same time, he acknowledged that due to the complexity of the issue, meeting these deadlines may not be possible. A representative of the Ministry of the Interior said that the government is also preparing its own bill; however, it will not be ready before summer, already after the formation of the new composition of Parliament.
Outdated legislation and the absence of real oversight
Both MPs and representatives of the executive branch agree that the current legislation on the acquisition of real estate by foreigners has long failed to match reality. In its current form, the law contains many loopholes and in practice does not establish serious restrictions. At the first stage, Parliament requested detailed statistics from the government on real estate owned by foreign citizens in order to have an objective basis for further decisions.
AKEL party leader Stefanos Stefanou emphasized that this is not only about the economy, but also about state security. According to him, cases are being recorded of purchases or interest in real estate near airports, military facilities, the ceasefire line, and coastal zones. Especially many plots have already been sold to foreigners in areas east of Larnaca and west of Limassol.
Pressure on the housing market and social consequences
Stefanou also noted that the proposed measures are aimed at gradually leveling the real estate market, which, in his words, has been in a state of a “bubble” for many years, especially in large cities. Rising prices have led to the fact that a significant part of the population can no longer afford to buy their own home.
The goal of the initiative is not a complete ban on the purchase of real estate by citizens of third countries, but the cessation of uncontrolled buying up of fertile land by individuals and companies. A representative of the DIKO party, Zacharias Koulias, added that the authorities want to put an end to “impunity” in the south of the island, given the lack of control over processes in the occupied territories. He noted that even Turkish companies registered in Cyprus or in other EU countries are actively acquiring real estate on the island.
Who is behind the purchases and risks for investment
MP from the Green Party Stavros Papadouris drew attention to the problem of identifying the ultimate beneficiaries of transactions. According to him, citizens of third countries often acquire an unlimited number of properties through complex corporate structures, effectively remaining beyond oversight. The Land Department stated that it supports the idea of streamlining the legislation, but warned that verifying ultimate owners is an extremely complex and resource-intensive process due to chains of holdings and companies.
At the same time, the Bar Association called for caution, stressing that ill-considered changes could negatively affect the inflow of foreign investment, which continues to play an important role for the Cypriot economy.
Figures that worry the authorities
According to the latest report of the Auditor General, an ever larger share of real estate transactions in Cyprus involves citizens of third countries, including people from Lebanon, Israel, Russia, and China. In 2024, 4 321 transactions, or 27,4% of the total number of real estate sales, were registered to non-European buyers. The number of title deeds transferred to them increased from 873 in 2020 to 2 511 in 2024.
At the same time, the Auditor stressed that these data are understated and do not reflect the real picture, since they do not take into account companies registered in Cyprus or in the EU but controlled by beneficiaries from third countries. Formally, such structures are considered local, although in practice the property is under foreign control.
The discussion in Parliament continues, and it is expected that the topic of restrictions on the purchase of real estate by foreigners will become one of the key issues ahead of the elections, touching simultaneously on security, social justice, and the sustainability of the housing market.