Is a Vulture Fund demanding money under false pretences?

Nigel Howarth
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Is a Vulture Fund demanding money under false pretences?

In what appears to be a deeply troubling development, a Vulture Fund is demanding more than €625,000 from an elderly British woman, despite the fact that she no longer owns the property in question. This outrageous demand raises serious legal, ethical, and moral questions.

The woman had received the Title Deed to her property through Cyprus’ “Trapped Buyers” law, before the Court of Appeal ruled it unconstitutional last year.

The law was designed to protect innocent buyers who had paid for their homes in full but could not secure legal ownership due to their developer’s unpaid debts. Importantly, she sold the property four years ago, and it is now fully registered under the name of a new owner.

Yet, a Vulture Fund has come knocking, claiming a right to money tied to a property she no longer owns, under a legal scheme that was valid and upheld at the time of issuance. She now fears she may be forced to sell her UK home to settle a debt that was never hers to begin with. How is this justice?

Not an isolated case

Worryingly, this appears to be far from an isolated incident. Several former buyers who received their Title Deeds under the same 2015 law have also reported receiving demand letters from the same Vulture Fund.

Strangely, instead of pursuing the current property owners, this Vulture Fund is targeting former buyers – individuals who complied fully with the law, sold their properties, and moved on with their lives. Is this strategy a legal loophole – or a deliberate intimidation tactic?

Legal grey zones and government silence

Following the June 2024 ruling by the Court of Appeal, which found the Trapped Buyers law unconstitutional, Cyprus’ Interior Minister publicly reassured buyers that Title Deeds already issued could not be taken back. However, he failed to clarify whether those same buyers might still be pursued for their developer’s debts.

That omission has left thousands in legal limbo.

In April this year, Nicos Tornaritis, Chairman of the Parliamentary Legal Affairs Committee, sent a strongly worded letter to the Association of Credit Acquiring and Credit Servicing Companies (ACACS), urging Vulture Funds to pause auctions, sales, and repossessions until legal clarity is reached.

But has this appeal been ignored?

A question of legitimacy and morality

So let’s ask the critical questions:

  • Is this Vulture Fund demanding money under false pretences?
  • How can it be legal to pursue former property owners for debts tied to a developer’s loan?
  • What protections are in place for the 11,000 buyers who obtained Title Deeds before the law was overturned?

And most worryingly, what about those who purchased these properties second-hand? These new buyers, and even their lawyers, likely have no idea they may be sitting on a property burdened with legacy debt claims.

Time for urgent action

This situation is not just a legal mess, it is a moral failure. Vulture Funds, with no connection to the original transactions, are exploiting the confusion left behind by incomplete legal reforms and weak political will.

The Cypriot government and parliament must act immediately to clarify the legal status of these claims, shield innocent buyers, and hold these predatory Vulture Funds to account.

Otherwise, thousands of homeowners – past and present – may be forced to pay the price for someone else’s debt, all while being misled into thinking their ownership was secure.

Have you been affected by a similar issue? Share your story in the comments below or get in touch.

 

Golden visas in Cyprus: Investment or inequality?

Nigel Howarth
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0
Golden visas in Cyprus: Investment or inequality?

Over the past ten years, the Republic of Cyprus has granted more than 30,000 passports and “golden visas” to non-EU nationals, alongside over 60,000 residence permits to encourage investment in the island’s economy.

On paper, these figures reflect a booming investment-driven migration strategy. But behind the numbers lies a growing concern: who really benefits from this influx of capital – and who’s paying the price?

A decade of selling access

New data disclosed by Finance Minister Makis Keravnos in response to parliamentary questions paints a striking picture of how far Cyprus has leaned into citizenship and residency-for-investment schemes.

Between 2014 and 2025:

  • 28,660 third-country nationals were granted permanent residency through property purchases.
  • 7,372 individuals received permanent residency via broader investment routes (including businesses).
  • 61,128 permits were issued for temporary residence and work, primarily targeting foreign talent in international companies.

At first glance, this may sound like economic growth. But these programmes weren’t built to provide citizenship to immigrants in need or to attract working families. They were designed to attract capital, and the results reflect that aim.

Who’s buying in?

The data reveals a clear geographic pattern in the permanent residency-by-investment category:

  • China: 10,100
  • Russia: 8,478
  • Lebanon: 1,822
  • Ukraine: 983
  • Jordan: 907
  • Iran: 699
  • Egypt: 586
  • Vietnam: 412
  • Syria: 346
  • United States: 277
  • United Kingdom: 251

The remaining 3,267 permits were granted to nationals of other countries, with dependants of main applicants included in these numbers.

The government received 14,646 applications for these permits over the decade. Yet 1,209 were rejected, and 1,248 are still pending, a telling sign of the scheme’s loose oversight and slow reforms.

A programme on pause – but not really

In 2021, amid growing scrutiny, the Ministry of Interior froze the review of over 3,000 golden visa applications. The freeze, we’re told, was temporary, just until new criteria could be approved. But three years later, no clear accountability has emerged, and new applications continued to roll in even as old ones sat untouched.

The reason for the pause? According to the Finance Minister, the original criteria were too easily exploited. Yet during that time, the government continued issuing permits under essentially the same framework, reinforcing critics’ claims that the freeze was more of a public relations gesture than real reform.

Real estate for the few

What makes all of this even more controversial is the impact on Cyprus’ property market. While the government has sold the scheme as a win for the economy, the reality is starker: these programmes have inflated housing prices, skewed supply toward luxury development, and left many locals priced out of the housing market.

In fact, MP Giorgos Koukoumas of AKEL raised direct concerns about this in Parliament. He argued that these schemes have helped turn parts of Cyprus into exclusive investment enclaves for wealthy foreigners, with little long-term benefit to Cypriots themselves.

However, several key questions remain unanswered, including:

  • The proportion of total property in the free areas of Cyprus owned by Cypriots, EU citizens, and third-country nationals.
  • The number of sales or assignment agreements submitted to the Land and Surveys Department over the past decade, relating to purchases by EU and non-EU citizens.

Without this information, it’s difficult if not impossible to measure the full extent of the programme’s impact on local Cypriots.

Work permits for high-tech workers – or loopholes?

On the employment front, 27,043 initial temporary residence and work permits were issued to foreign nationals hired by high-tech and international companies between 2014 and 2025. Including renewals, this number rises to 61,128.

However, the Ministry did not respond to questions regarding the number of rental contracts filed with state agencies by these foreign nationals.

While attracting international talent may benefit Cyprus’ tech and business sectors, critics worry that loopholes allow exploitation, including lax enforcement of local hiring ratios and limited housing oversight.

Where do we go from here?

Cyprus’ golden visa era is far from over – but the cracks in the model are becoming harder to ignore. The country has become a magnet for capital, but capital doesn’t vote, doesn’t need a home to live in, and doesn’t raise families on the island.

Meanwhile, housing affordability continues to decline. Young Cypriots are finding it harder to rent, let alone buy. And for many, the sense that the country is being sold off – piece by piece – is no longer just rhetoric – it’s a reality.

Unless policymakers move toward greater transparency, accountability, and fairness, Cyprus risks becoming not a destination, but an asset – one that can be bought, developed, and flipped – with little thought for the people who call it home.

Replies by Interior Minister to parliamentary questions (Greek & English)

Luxury property market sees notable slowdown in April

Nigel Howarth
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0
Luxury property market sees notable slowdown in April

The Cypriot real estate market showed clear signs of a slowdown in April 2025, particularly at the luxury end of the market.

According to data released by Ask Wire, a tech-driven property data firm, the 10 most expensive property transactions across the island totalled €18.4 million. The top 50 deals came to a combined value of €43.8 million.

The most expensive single transaction occurred in the Nicosia district, with a plot of land in Engomi selling for €3.3 million.

Ask Wire’s analysis, based on real-time tracking of property transactions, asking prices, and construction activity, highlights a significant month-on-month decline. CEO Pavlos Loizou noted, “April can reasonably be described as a month of contraction for the luxury property market, considering the value of the 50 most expensive sales dropped by 52.8% compared to March 2025.”

Regional overview: balance slight edge to Limassol

The data shows a relatively even distribution of luxury transactions across three key districts – Limassol, Paphos, and Nicosia. Among the 10 most expensive sales in April, Paphos accounted for four, Limassol for three, Nicosia for two, and Larnaca for one.

Limassol narrowly topped the charts for high-end property sales, with its top 10 transactions making up 26% of the combined value of the 50 most expensive sales nationwide. Paphos followed closely with 25.3%, and Nicosia with 24.7%.

In absolute terms, the top 10 sales in Limassol reached €11.4 million, compared to €11.1 million in Paphos and €10.8 million in Nicosia. Larnaca trailed at €6.3 million, representing 14.4% of the total, while the Famagusta district’s luxury segment brought in €4.2 million.

Larnaca underperforms, Limassol hits record territory

A striking observation from Loizou was that only 18 of the 50 high-value properties were sold for over €1 million. “Larnaca, which had been developing a solid reputation in the luxury property market, performed surprisingly poorly,” he said. “Meanwhile, Limassol appears to be operating at levels that are uncharacteristically moderate by its own standards, as two properties were sold for under €1m while the remaining eight were clustered below €1.8m.”

Interestingly, two of Limassol’s top 10 properties were sold for under €1 million, while the remaining eight clustered just below €1.8 million, a sign of high transaction volume at the lower end of the luxury bracket.

Another notable insight was the prominence of land sales in April’s top-tier transactions. Of the 10 most expensive deals, six involved land plots.

Across the 50 highest-value sales, the breakdown included 22 houses, 13 land plots, seven building plots, six flats, one apartment block, and a single commercial property.

Conclusion

April 2025 marked a shift in momentum for Cyprus’ luxury property market. While the overall transaction value dipped significantly, regional dynamics remained competitive, with Limassol marginally leading the pack.

Yet, the data also underscores a growing role for land investments and a possible recalibration in what constitutes a “luxury” sale, particularly in terms of value thresholds.

 

Political parties react to Auditor General’s report

Nigel Howarth
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Political parties react to Auditor General’s report

Cyprus’ political landscape was once again stirred this week as the findings of the Auditor General’s latest report on party finances came under scrutiny.

Political parties have reacted to the revelations, some welcoming the recommendations, others defending their practices, and a few launching broader critiques of the system itself. While improvements over previous years were noted, the report has clearly reignited the debate over transparency, accountability, and political funding in Cyprus.

AKEL: dismisses CIP involvement, embraces reforms

In response to the Auditor General’s findings, AKEL issued a statement affirming that it has already taken significant corrective steps. The party categorically rejected any implication of involvement in the controversial Cyprus Investment Programme (CIP).

The report made several observations regarding AKEL’s financial practices, particularly on the proper submission of consolidated financial statements, the appointment of the appropriate approving bodies, and the management of donations within legal limits.

AKEL clarified that past excesses in donation limits from individuals were linked to a discontinued practice, whereby MPs donated their full salaries to the party and were then paid by the party itself;  a system phased out by June 2021.

As for donations linked to CIP, AKEL stated that the two individuals who donated a total of €15,000 did so nearly three years after receiving citizenship and that the donations were unrelated to the programme. No corporate donations tied to these individuals were identified, and companies that did contribute had long-standing affiliations with the party.

The party also underlined that significant progress had been made since 2012–2015 in applying accounting standards. However, AKEL criticised the legislative framework itself, calling it overly bureaucratic and often impractical.

DIPA: transparent finances, clean record

AleKos Tryfonides, Parliamentary Representative of the Democratic Alignment (DIPA), defended his party’s financial integrity during a public broadcast. He highlighted that DIPA had no involvement in any corruption scandals, as confirmed by the report.

Tryfonides noted that all contributions — whether from individuals or legal entities — are recorded and publicly available on the party’s website. Until January 2022, DIPA operated entirely without state funding, relying solely on its own resources. The party’s annual donations remain among the lowest of all parliamentary parties.

Emphasising the party’s ethos, Tryfonides stated that DIPA does not align political decisions with financial interests. He also revealed that DIPA had engaged in a constructive dialogue with the Audit Office to enhance financial transparency and reiterated the party’s proposals for institutional reform, including banning MPs from holding other professional roles.

“It’s time to put an end to past bad practices,” he declared, urging MPs to fully commit to their parliamentary responsibilities.

The Green Party: clean, transparent, and committed

The Cyprus Green Party welcomed the Auditor General’s report, which confirmed the party’s full transparency and lack of involvement in the CIP. According to the findings, the Greens were the only political group not to receive donations from naturalised individuals or companies involved in the scheme.

The party proudly pointed out that it had the lowest percentage of private company donations among all political parties, contrasting this with other parties that allegedly received funds from entities with questionable backgrounds.

While acknowledging minor technical irregularities and older procedural oversights of little financial significance, the Greens affirmed these have since been resolved. From 2023 onwards, they have implemented internal audit mechanisms, upgraded accounting systems, introduced statutory changes, and now maintain named donation registers with receipts issued for all contributions.

The party reiterated its long-standing commitment to public accountability, urging others to follow suit and face scrutiny rather than deflect criticism.

Volt Cyprus: fierce criticism, call for a new era

Volt, though not covered in the latest audit period (2016–2021), used the findings to mount a scathing attack on the political establishment. The movement criticised parties that, while publicly defending the nation’s credibility, were allegedly benefiting from programmes that tarnished Cyprus’s international reputation.

Referring to the sale of citizenships to fugitives and individuals facing criminal charges, as well as breaches of EU law, Volt claimed these actions were motivated by personal and partisan gain.

The statement concluded with a call for collective civic responsibility and a renewed vision for a better Cyprus, one deserving of its people.

As these developments unfold, it’s evident that the push for greater transparency and political accountability in Cyprus is far from over. With varying degrees of acceptance and resistance, the Auditor General’s report has not only exposed the financial practices of parties but also tested their commitment to public trust.

Property and construction firms top Cyprus political donations

Nigel Howarth
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0
Property and construction firms top Cyprus political donations

Between 2016 and 2021, property development and construction companies emerged as the leading source of corporate donations to political parties in Cyprus, according to an analysis by the Audit Office.

The study, which examined contributions exceeding €1,000, revealed that these sectors were responsible for over a quarter (25.52%) of all corporate political contributions during the five-year period.

These companies donated to all major political parties except for the Greens, underlining the broad political reach of the construction and property industries.

Corporate donations by sector

Coming in second were trade and manufacturing firms, which accounted for 15.52% of donations, followed by companies involved in investment management and consultancy services, contributing 9.35%.

Other notable sectors included:

  • Financial services: 6.02%
  • Investment activities: 4.71%
  • Accounting and tax services: 4.65%
  • Alcohol production and distribution: 4.39%
  • Shipping: 2.95%
  • Technology and information systems: 2.92%
  • Gaming and lottery: 2.85%
  • Mining: 2.69%
  • Energy: 2.28%

Smaller contributions came from general services (2.10%), hospitality (1.93%), renewable energy (1.5%), tourism (0.62%), management services (0.51%), betting (0.22%), education (0.18%), and real estate services (0.07%).

Party-specific donation trends

The Audit Office also highlighted sector-specific donation patterns across different political parties:

  • Democratic Rally (DISY): Received its highest share of corporate donations – 23.55% from development and construction firms.
  • AKEL (Communist Party): Trade and manufacturing companies were the largest contributors at 30.66%.
  • Democratic Party (DIKO): Mirroring the far-right ELAM, 29.97% of DIKO’s corporate donations came from property and construction, while ELAM saw a staggering 74.07% from the same sector.
  • EDEK (Socialist Party): Shipping companies topped their donation list at 30.12%.
  • DIPA (Centre-right): Received the highest proportion (37.82%) from property development and construction.
  • Movement of Ecologists-Citizens’ Cooperation (Greens): Notably, construction and property development did not feature among the top sectors. Instead, the party received most of its corporate donations (36.20%) from gaming and lottery companies.

The Audit Office based its findings on official donation registers maintained by the political parties, supplementing these with further research using the Department of Registrar of Companies and Intellectual Property and online sources to classify donations by sector.

This analysis sheds light on the strong influence of certain industries, particularly property and construction, on the political landscape in Cyprus, raising questions about the nature and impact of corporate involvement in party funding.

Political parties got €1.1M donations from Golden Passport Scheme

Nigel Howarth
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0
Political parties got €1.1M donations from Golden Passport Scheme

Cypriot political parties received more than €1.1 million in donations from individuals and companies connected to the Cyprus Investment Programme, commonly known as the “Golden Passports” scheme, between 2016 and 2021.

According to findings by the Audit Office, carried out at the request of the Parliamentary Committee for the Monitoring of Development Plans and Public Expenditure Control, donations were made either directly by individuals who acquired Cypriot citizenship through the scheme, or through companies linked to those individuals.

The political parties identified as having received these contributions include DISY, DIKO, EDEK, DIPA, and ELAM.

Donations from Individuals

Records indicate that private donations amounting to €180,000 were made by individuals to DISY and AKEL. These were documented in the official contribution registers submitted by the parties, and cross-referenced with the list of naturalised individuals provided to the Audit Office by the Ministry of the Interior.

Donations from companies linked to applicants

Further analysis revealed contributions totalling €299,500 made by companies associated with naturalised individuals. These donations were directed to DISY, DIKO, ELAM, and DIPA during the same 2016–2021 period.

Contributions from citizenship service providers

The Audit Office also identified €645,110 in donations from companies that provided naturalisation services as part of the citizenship programme. These amounts were distributed as follows:

  • DISY: €251,600
  • AKEL: €118,660
  • DIKO: €248,850
  • EDEK: €3,000
  • DIPA: €23,000

Transparency, not accusation

The Audit Office emphasises in its special report, titled “Consolidated Report of Compliance Audit Findings on Parliamentary Political Parties for the Years 2016 to 2021”, that the purpose of this disclosure is to promote transparency. It clarifies that the acceptance of these donations by political parties is not deemed a violation of the Law on Political Parties.

Read the full report in Greek here

(Translated from the Greek original published in 24 Sports&News)

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