An article by former MEP Takis Hadjigeorgiou published in the Greek language Kathimerini talks about the large number of foreigners buying property in Cyprus through companies, but the state hasn’t got a clue about who owns what.
I have translated Mr Hadjigeorgiou article below:
About a year ago, I met with the most senior government official responsible for property matters in Cyprus to understand what he knew about growing concerns: an increasingly rapid wave of property acquisitions by non-EU nationals. I won’t name him – only emphasise that he was the most institutionally responsible figure – because my aim is not to target anyone personally.
I approached the meeting with a simple question: does the state have a clear and comprehensive picture of what’s happening? Are these purchases isolated incidents or signs of something systemic?
I told him openly that I had been receiving increasingly frequent and troubling reports: foreign nationals acquiring vast plots of land, apartment buildings, development-ready plots and even historical properties using immense amounts of money. These weren’t sporadic acts but a repeating and intensifying pattern. Most of the cases I’d heard of involved Israeli nationals.
His response was surprisingly casual. He said: “I’ve heard that too, but didn’t we used to say the Lebanese were buying us out?” I reminded him that I wasn’t speaking to a neighbour or colleague, I was speaking to the state. And the state should know how many properties have changed hands, their value, the identity and origin of the buyers, and the financial pathways used.
The next response was even more worrying: “Unfortunately, most of these purchases happen through companies, and the Land Registry doesn’t know who the shareholders are.”
So the legal loophole is known. Yet, one year on, it remains open.
Exploiting loopholes in the property law
Under current Cypriot law, a third-country national is allowed to purchase one residential and one commercial property. That’s it. But this restriction is being bypassed systematically through the misuse of Cypriot companies. The result is massive property transfers without the state truly knowing what’s going on.
There are two main ways this happens:
- A Cypriot owns a company that holds property. Rather than selling the property, they sell the company to a foreign national. Legally, it appears the property hasn’t changed hands. But in reality, control has shifted. The new owner demolishes what’s there and builds a block of apartments. This is followed by more purchases and further construction, and the state hasn’t got a clue of what’s going on.
- A foreigner pays a Cypriot to establish a company in the Cypriot’s name. That company acquires land. Later, through a simple transfer of shares filed with the Companies Registrar, the company – and by extension the land – is handed over to the foreign investor. On the surface, it’s legal. In substance, it’s an abuse of the system.
These tactics explain the rise of property developers from non-EU countries operating all over Cyprus. Behind the front of Cypriot-registered companies, they buy and sell land, renovate, evict, resell, or rent to their compatriots – often at exorbitant prices. The local population is priced out, and the state just sits back and watches it happen.
Consequences on society & property market
This isn’t just a legal or economic issue – it’s a deeply social one. The effects are being felt on the ground, particularly in certain geographic areas where foreign-controlled companies are buying up entire blocks. It looks less like coincidence and more like coordinated strategy.
Prices are soaring. Rents are becoming unaffordable. Long-time residents are being pushed out or left behind. The imbalance of purchasing power between locals and these foreign-backed buyers is stark and widening.
And still, the government has no centralised data. It cannot say who owns what. It cannot track whether buyers are Russian, Chinese, Israeli or from elsewhere. Whether through genuine ignorance or wilful inaction, the result is the same: no oversight, no regulation, no strategy.
The state must act now
We urgently need legislative reform. The loopholes must be closed – quickly, decisively, and retroactively. Transparency in corporate ownership of property is not a luxury; it is a necessity for sovereignty, security, and social balance.
This issue gained broader public attention after recent remarks by AKEL’s General Secretary, Stefanos Stefanou. His words were both courageous and necessary. Because this is not about nationalism – it’s about public interest. It is about the authority of the state, the integrity of our laws, and the future of our communities.
The conversation must continue. But more importantly, the state must act.
We must stay vigilant.
