The Cyprus Bar Association (CBA) has expressed serious concerns over draft legislation currently being debated in Parliament concerning the acquisition of immovable property by third-country nationals.
While acknowledging the aim of strengthening oversight, the CBA warns that the proposals could undermine legal certainty, property rights and freedom of contract, while potentially deterring foreign investment.
The debate comes amid growing concern over housing affordability. Land Registry data shows that over 26% of real estate sales in 2025 involved third-country nationals, with Paphos and Limassol recording the highest activity – prompting political parties to submit proposals restricting sales.
Four draft bills are before the Committee on Internal Affairs: two from AKEL, one from DISY, and one from members of the Parliamentary Audit Committee. AKEL’s proposals seek to curb what they describe as uncontrolled property acquisitions by third-country nationals and protect access to housing for lower and middle-income groups. The Audit Committee proposal targets intermediary structures used by third-country nationals, while DISY’s bill focuses on modernising procedures in the public interest.
In its assessment, the CBA argues that proposals preventing the deposit of sale contracts prior to compliance checks exceed the purpose of contract registration. It recommends that such checks are carried out only at the title transfer stage.
The Association also highlights legal uncertainty arising from vague criteria, undefined documentation requirements and the absence of decision deadlines for authorities, which could delay or effectively freeze transactions. It further warns of conflicting control regimes, lack of transitional provisions, and inconsistencies between proposed ownership thresholds and existing legislation.
Regarding the DISY proposal, the CBA suggests practical amendments, questions the feasibility of strict timelines, and raises proportionality concerns over additional documentation requirements for foreign buyers.
Finally, the CBA reiterates its call for all property sale agreements exceeding €100,000 to be drafted exclusively by lawyers, stressing that regulated legal oversight is essential for transparency, legality and legal certainty. It concludes that effective regulation should rely on clear, proportionate and constitutionally compliant measures, rather than broad restrictions or undefined powers.
