Cyprus is preparing to introduce sweeping restrictions on land acquisitions by third-country nationals, limiting ownership to a maximum of two plots with a combined area of up to 1,100 square metres.
The move follows a joint effort between the government and parliament to consolidate four separate legislative proposals into a single bill, incorporating recommendations from the Ministry of the Interior. The unified proposal is now advancing through parliamentary scrutiny, with a vote expected in early April.
Key restrictions and unresolved questions
While there appears to be broad agreement on the overall land cap, authorities have yet to finalise the permissible buildable area for residential, commercial, and office use tied to such plots.
The draft legislation, currently under article-by-article review by the parliamentary Interior Committee, signals a decisive shift towards tighter regulation of property ownership by third-country nationals in Cyprus.
Ban on sensitive and strategic land
The proposed framework introduces outright prohibitions on third-country nationals’ ownership of:
- Forest and agricultural land
- Property adjacent to the ceasefire line
- Land near critical national infrastructure, including ports, airports, military bases, and coastal zones
These measures are intended to safeguard strategically sensitive areas and address longstanding concerns over national security and land use.
Closing loopholes and strengthening oversight
The bill also seeks to eliminate existing legal provisions that have enabled indirect acquisition of property by third-country nationals without approval from the Council of Ministers.
In their place, stricter control mechanisms and transparent eligibility criteria will be introduced, aiming to ensure more effective oversight of foreign investment in the property market.
Political consensus emerging
Aristos Damianou, chair of the parliamentary Interior Committee, noted that the consolidated proposal appears to command majority support and is likely to pass.
He criticised what he described as decades of largely unchecked acquisition of Cypriot land by third-country nationals, stating that a significant share of property transactions in recent years, reportedly up to one in two, has involved third-country nationals.
Market impact and broader context
The proposed cap of approximately 1,050 to 1,100 square metres across two plots reflects an emerging consensus, though finer details remain under discussion.
The reforms come amid heightened sensitivity around land ownership in Cyprus, a country still divided and hosting foreign military bases, adding further complexity to property governance.
If passed, the legislation is expected to mark a turning point in Cyprus’ real estate landscape, signalling a more controlled and strategic approach to property investment by third-country nationals.
