Parliament to debate controls on foreign property purchases

Cyprus’ parliament is set to debate new proposals aimed at tightening controls on property purchases by third-country nationals, amid growing concern over large-scale acquisitions and the use of company structures to bypass existing restrictions.

The discussion begins on Thursday at the House interior committee, where two bills tabled by AKEL general secretary Stefanos Stefanou will be examined. The proposed legislation seeks to curb what the party describes as “uncontrolled” foreign property buying, particularly cases where acquisitions are carried out through companies acting as a front.

A central provision of the bills would prohibit foreigners from acquiring forest or agricultural land, as well as property located adjacent to the ceasefire line. The proposals also restrict foreign buyers to the purchase of just one residential property – either an apartment or a house – and explicitly close loopholes allowing individuals to acquire multiple properties via corporate entities.

Importantly, the bills clarify that companies controlled by foreign nationals will be treated as “foreigners” under the law. This includes Cypriot or EU-registered companies where control ultimately lies with non-nationals, ensuring such structures cannot be used to circumvent restrictions.

Property size thresholds for foreign buyers

Under the proposed framework, ministerial council approval would no longer be required for the acquisition of:

• One apartment or one house up to 200 sqm.
• One office up to 300 sqm.

These thresholds would apply both to foreign individuals and to companies controlled by foreign interests.

According to the explanatory memorandum, the bills amend the Transfer and Mortgage of Immovable Property Law to prevent the Department of Lands and Surveys from approving transfers or registering sale contracts where restrictions under the Acquisition of Immovable Property (Aliens) Law apply.

The stated aim is to strengthen legality checks, prevent indirect ownership through assignment contracts or corporate vehicles, and improve transparency around the beneficial owners of legal entities acquiring property in Cyprus.

Key measures at a glance

The proposed legislation includes:

• An expanded definition of “company controlled by foreigners”, covering any entity whose beneficial owner – as defined under anti-money laundering legislation – is a foreign national.
• The removal of provisions in existing laws that create legal grey areas, particularly those allowing the acquisition of extensive landholdings by foreigners.
• Clear exemptions from ministerial approval for limited residential and commercial purchases within defined size limits.
• Restrictions on foreign-controlled companies acquiring more than one commercial property.
• An outright ban on foreign ownership of forest land, agricultural land, property near the ceasefire line, and sites linked to critical infrastructure.

If adopted, the measures would represent a significant tightening of Cyprus’ foreign property ownership regime, with potential implications for investors, developers and the wider real estate market.

(In 2025, third-country nationals accounted for 4,809 property sales, as measured by the number of property sales contracts deposited at Land Registry offices, which accounted for  26.5 per cent of the total number of property sales in the year.)