**NICOSIA, Cyprus** – In a significant legislative push, the Cypriot Parliament is poised to introduce stringent new regulations governing the acquisition of immovable property by foreign nationals, aiming to rectify an outdated legal framework perceived as riddled with deficiencies. The ambitious timeline targets the passage of new legislation by May, before the House of Representatives dissolves in anticipation of upcoming parliamentary elections. This move signals a concerted effort by the government and lawmakers to regain a more robust oversight of foreign investment in the island’s crucial real estate sector.
The impetus for this legislative overhaul stems from widespread acknowledgment that the current laws governing foreign property purchases are no longer fit for purpose. Critics have pointed to inherent loopholes that have, in practice, rendered restrictions largely nominal. In response, three distinct parliamentary bills proposing curbs on foreign ownership have been formally tabled. In a bid to consolidate these efforts and present a unified governmental stance, Interior Minister Constantinos Ioannou has advocated for merging these private members' bills with the administration's own proposed amendments. This consolidated approach is expected to streamline the legislative process and ensure a comprehensive revision of the existing statutes.
At the heart of the proposed changes lies a fundamental shift in the approval process for property transactions. Under the new framework, the director of the land registry would be explicitly prohibited from sanctioning sales or transfers of immovable property that fall under the purview of these impending restrictions. This measure is designed to provide a more direct and effective mechanism for controlling foreign acquisition, moving beyond the current, less rigorous oversight.
The urgency of this reform is underscored by mounting concerns, voiced by several Members of Parliament, regarding potential national security implications. These apprehensions are particularly acute concerning properties acquired by foreign entities in close proximity to sensitive locations such as airports, military installations, the UN-patrolled buffer zone, and strategic coastal areas. The auditor-general’s office has also contributed to this discourse, highlighting a discernible upward trend in property acquisitions by non-EU nationals, including citizens from countries such as Lebanon, Israel, Russia, and China.
Statistical data from the auditor-general’s office paints a compelling picture, indicating that in 2024, foreign nationals were responsible for over a quarter of all property sales recorded on the island. It is widely believed that this figure may represent an underestimate, further substantiating the need for more stringent regulatory measures. The proposed legislation, therefore, is not merely a procedural adjustment but a strategic recalibration aimed at balancing the economic benefits of foreign investment with the imperative of safeguarding national interests and maintaining a more controlled and transparent property market. The forthcoming legislative session is expected to be a pivotal moment in shaping the future landscape of foreign real estate ownership in Cyprus.