The property market in Cyprus is facing uncertainty due to changes in the process of renewing professional licenses for real estate agents (realtors) and their assistants.
According to a letter dated 3 February 2025, the President of the Cyprus Association of Estate Agents (CREAA), Christos Nicolaou, expressed concerns about the new requirements, requesting clarification from the President and members of the Board of the Council. In particular, the requirement to provide social security records when applying for license renewal was criticized. Nicolaou believes that this condition is not provided for in the “Estate Agents Law” and violates the rights to the protection of personal data.
Nicolaou also pointed out that the council’s approach to part-time work and the performance-based commission system make it difficult for realtors to operate legally. He warned that such changes could lead to an increase in illegal operations in the property market.
However, the Cyprus Board of Registration of Estate Agents has categorically denied the accusations of creating obstacles for real estate agents. According to them, all applications that met the established criteria were approved, and the rejected cases were due to non-compliance with the requirements of the law. The board stressed that there is no risk for licensed real estate agents who comply with the law, and that the concerns of some market participants are related to the increased attention to employment practices, especially in cases of “fictitious employment”.
The Council also recalled that under the Real Estate Agents Act 2010, only licensed real estate agents can receive commission on real estate transactions. The Act contains provisions different from the labor law, and only a licensed agent can receive commission on the sale of real estate, and violation may entail legal consequences.
The Director of the Labor Relations Department of the Ministry of Labor, Andis Apostolou, noted that labor legislation does not prohibit part-time work in any specialty, if the contracts comply with current regulations. He specified that the licensing of realtors and their assistants is regulated by the “Real Estate Agents Act”, which contains provisions different from labor legislation.
Apostolou also stressed that there are no legal restrictions prohibiting an employee from receiving commissions from their employer, provided that this is stipulated in the employment contract. In this case, commissions are considered part of the employee’s insurance income.
According to the minimum wage decrees for 2022 and 2023, full-time employees must receive at least 900 euros upon hiring and 1,000 euros after six months. If an employee’s salary is below the minimum, the employer must prove that the employee works part-time.
