Cyprus is moving towards a unified legislative framework to regulate the acquisition of immovable property by third-country nationals, following discussions at the House of Representatives’ Committee on Internal Affairs.
The initiative seeks to consolidate three pending legislative proposals into a single text, alongside related proposals from the Ministry of Interior, with the aim of strengthening oversight and addressing long-standing regulatory gaps.
The Minister of Interior, Konstantinos Ioannou, told the Committee that the objective is to introduce amendments that better safeguard the legal framework governing land and property acquisition. He stressed the importance of effective control mechanisms, clear criteria and increased transparency, particularly in light of a notable rise in property purchases by third-country nationals linked to geopolitical developments in the region and the war between Russia and Ukraine.
The Chair of the Committee, Aristos Damianou, confirmed that there is agreement in principle to work towards a consensus-based proposal, with the intention of submitting the legislation to the House plenary before the end of the current parliamentary term. The aim is for the bill to be presented with broad political support.
The proposals under examination include submissions from AKEL General Secretary Stefanos Stefanou and a cross-party group of Members of Parliament. A central element is the introduction of an obligation on the Director of the Department of Lands and Surveys to refuse property transfers or the registration of sale, exchange or assignment contracts where restrictions under the Immovable Property Acquisition (Aliens) Law apply.
Further provisions seek to abolish legal pathways that allow the indirect acquisition of property by third-country nationals without prior Cabinet approval. These measures are intended to prevent the use of Cypriot companies or other legal entities as intermediaries for property purchases, while also reinforcing protections for agricultural land and the rural economy. At the same time, the proposals call for the modernisation of procedures governing third-country property acquisitions to safeguard the public interest.
According to the Minister, while existing legislation places clear restrictions on acquisitions by natural persons, it is less effective in regulating legal entities, resulting in loopholes and ambiguities. The Ministry of Interior has therefore begun drafting a revised framework that will more clearly define what constitutes property acquisition and set limits on the maximum land area that may be acquired.
Additional issues under consideration include the introduction of time limits between successive applications to prevent procedural abuse, as well as possible restrictions on acquisitions in specific planning zones or areas of heightened security and public interest. The Minister emphasised that the proposed changes aim to balance effective regulation with social cohesion and economic stability.
Representatives of the Ministry of Finance expressed support for the overall approach, while the Cyprus Employers and Industrialists Federation proposed allowing third-country nationals to acquire up to two plots or residential units, subject to a maximum land area, with coastal areas excluded from any blanket restrictions.
(Translated and summarised from an article in StockWatch)
