The Cyprus Parliament’s Home Affairs Committee is accelerating work on a bill that will radically change the rules governing property purchases for third-country nationals and companies with foreign interests. The initiative’s primary goal is to stem the excessive concentration of land in the hands of foreign investors and curb price increases caused by the property bubble, particularly in major urban centers.
No-go zones and new criteria
The proposed reform calls for the introduction of clear geographic and quantitative restrictions. According to committee chairman Aristos Damianou, foreigners will be prohibited from purchasing properties in the following locations:
- Agricultural and Rural Areas: Protecting agricultural land is becoming a priority to ensure food and economic security.
- Critical infrastructure: The ban will apply to areas near military camps, ports and airports.
- Coastal areas: It is planned to restrict the sale of plots of land directly on beaches.
At the same time, the purchase of one-, two- and three-bedroom residential properties , as well as shops and offices in urban areas, will remain permitted, but under new conditions.
Combating fictitious transactions
The Ministry of Internal Affairs proposed supplementing the bill with conditions that would prevent the repetition of the mistakes of past investment programs. These include:
- Tenure: Obligation to retain ownership of the acquired residential property for at least five years.
- Residence Period: The buyer must be resident in the Republic for at least five years.
- Transparency control: The bill will cover assignment agreements contracts ), which were previously often used to conduct hidden transactions.
These measures are aimed at combating the practice of using “front men” to purchase large plots of land. The authorities are seeking to ensure that every foreign buyer undergoes due diligence: who they are, where their funds come from, and the purpose for which they are purchasing residential property.
Economic balance and social consequences
Fiscal Council President Michalis Persianis emphasized that maximizing foreign capital inflows should not be the state’s sole goal. Without a clear strategy, uncontrolled investment will lead to increased social inequality and create difficulties for local residents wishing to purchase their own residential property.
An important clarification is the law’s non-retroactive nature: transactions already completed or registered with the Land Department will not be annulled. The reform will only affect future transactions, establishing rational frameworks for foreign participation in the life of each region of the country.
The final text of the unified bill is expected to be ready within the next two weeks, so that parliament can vote on it before it is dissolved ahead of the upcoming elections.
