A large number of plots in the coastal areas of Larnaca and Limassol have come under the control of third-country nationals who, according to Cypriot officials, effectively manage development companies through complex and disguised schemes. This became known during discussions in the Parliamentary Committee on Internal Affairs. Of particular concern is the fact that deals for the sale of Cypriot real estate are often agreed outside the country and done informally, bypassing transparent procedures.
According to AKEL Secretary General Stefanos Stefanou, large land tracts have already been sold off to the east of Larnaca and to the west of Limassol. This concerns not only residential development, but also strategically important assets, including hotels, medical institutions, and commercial real estate in city centers.
Larnaca and Limassol — areas of special attention
Chairman of the Parliamentary Committee on Internal Affairs Aristos Damianou noted that in Larnaca the deals cover virtually the entire coastline from the former oil refineries to Dhekelia. In Limassol, activity is shifting toward the Lady’s Mile area. These territories have not only high investment appeal, but also important significance in terms of infrastructure and security.
Lawmakers emphasize that in some cases foreign investors acquire property through companies formally registered in Cyprus or the EU, which allows them to bypass existing restrictions and makes state control more difficult.
Shadow activity and the role of intermediaries
A separate problem was identified as illegal activity in the real estate services sector. According to MPs, third-country nationals often present themselves as project managers or business consultants, visit government departments, and in practice accompany real estate purchase-and-sale transactions. At the same time, they are assisted by local professionals, including lawyers and accountants.
Representatives of parliamentary factions stated that some contracts are prepared abroad and are not registered with the Land Registry, sometimes until the property has been resold several times. This creates risks of money laundering and distorts the real picture of real-estate ownership on the island.
Legislative initiatives and security concerns
The discussions were prompted by two draft laws aimed at limiting the acquisition of large land plots by third-country nationals and by companies acting in their interests. The proposed changes also envisage a ban on the purchase of housing by companies with foreign beneficial control, especially near critical infrastructure facilities and areas sensitive from a national security standpoint.
Damianou recalled that, in AKEL’s assessment, in recent years the legal framework has been weakened to such an extent that this has begun to threaten the key interests of the Republic of Cyprus. Against the backdrop of the “golden” passports scandals and mass high-rise development, the uncontrolled sale of land has led to a sharp rise in prices, making home purchases unaffordable for most citizens.
What’s next
Parliament insists on strengthening oversight, including tighter control over companies’ ultimate beneficial owners and the activities of professional intermediaries. Amid continued pressure on the real estate market and rising social tension, the regulation of transactions involving third-country nationals is becoming one of Cyprus’s key issues, affecting not only the economy, but also matters of sovereignty and public security.