Cyprus is preparing major changes to the legal framework governing the acquisition of land and residential property by citizens of non-EU countries. This move is prompted by political concerns about the sharp increase in transactions involving foreign buyers. The government is seeking to address existing legal gaps while maintaining the country’s attractiveness to scrupulous investors.
Main directions of changes
The Ministry of the Interior has begun drafting a revised legislative framework. Minister Constantinos Ioannou briefed the Parliamentary Committee on the Interior on plans to modernize the regulations. The focus is on the following aspects:
- Clear definition of concepts: Introducing a more transparent term for “real estate acquisition” and clarifying the maximum area of properties available for purchase.
- Time Limits: Consideration is being given to introducing a time limit between applications submitted by the same applicant. This should prevent abuse of procedures and the conversion of residential properties. into a tool for commercial activity.
- Territorial restrictions: Certain urban areas and districts related to issues of national security or public interest will be placed under special control.
The bill will consolidate three parliamentary initiatives aimed at strengthening controls over the transfer of property rights. The reform aims to eliminate provisions allowing indirect acquisitions of properties without the Council of Ministers’ approval and to curb the practice of using Cypriot companies as intermediaries for foreign buyers.
Balance between security and investment
The need for reform stems from a sharp increase in demand for residential real estate , driven by geopolitical instability in the region and events surrounding Russia and Ukraine. The minister acknowledged that the current law effectively regulates transactions with individuals, but demonstrates an inability to regulate legal entities, creating a lack of transparency.
Representatives of the Federation of Employers and Industrialists ( OEV ) proposed allowing foreigners to purchase up to two plots or residential properties with a total area of up to 4,000 square meters, insisting that coastal areas remain accessible for investment. Meanwhile, MPs emphasize that enhanced security measures are essential for Cyprus, where land ownership is closely linked to political stability.
Current acquisition rules
Until the new amendments come into force, current regulations remain in effect. Third-country nationals, including foreign-controlled companies, are required to obtain permission from the relevant district administration before purchasing any property.
The following frameworks have been established to date:
- Limits: A foreign buyer or married couple can purchase either a plot of land up to 4,000 square meters for personal residence or up to two residential properties in different complexes.
- Combinations of properties: It is permitted to purchase two residential properties or a combination of a residential property with a store (up to 100 sq. m) or an office (up to 250 sq. m).
- Documentation: Copies of title deeds, zoning and building permits, a certified sales contract, architectural plans , and proof of financial standing are required to register the transaction.
Authorities stress that the new approach will be holistic, balancing the island’s market attractiveness with social cohesion and the long-term interests of each region of Cyprus.
