Property buying curbs

Cyprus set to curb third-country nationals buying property

The Cyprus parliament is set for an intense start to the new year, as MPs return to debate a series of legislative proposals aimed at putting the brakes on the uncontrolled purchase of property by third-country nationals.

The issue has gained growing political and public attention, with the housing crisis increasingly emerging as one of Cyprus’ most pressing socio-economic challenges.

According to findings from the Audit Office, more than 27% of total property and land sales in 2024 were made to buyers from third countries. Paphos recorded the highest volume of such transactions, followed by Larnaca. These figures have raised alarm among policymakers, particularly in relation to housing affordability and national interest concerns.

(During the first 11 months of 2025 more than 26% of total immovable property sales were made by third country nationals.)

The three proposed bills will be examined by the Parliamentary Committee on Interior on Thursday, 15 January, during its first session following the Christmas recess. Two of the proposals were submitted by AKEL General Secretary Stefanos Stefanou, while the third was jointly tabled by MPs from DIKO, DISY and DIPA who serve on the Parliamentary Audit Committee.

AKEL proposals: Tighter controls on third-country nationals

The two AKEL-backed bills aim to place firm restrictions on the acquisition of immovable property by third-country nationals and foreign-controlled companies. Their stated objectives include safeguarding the right to housing for low- and middle-income households, preventing the unchecked sale of land, and protecting the country’s economy and national security.

The first proposal seeks to amend the Immovable Property (Transfer and Mortgage) Law, preventing the Director of the Department of Lands and Surveys from approving transfers or registering sales, exchanges or assignments where restrictions under the Immovable Property Acquisition (Aliens) Law apply. AKEL argues that this measure is essential to strengthen legal oversight and prevent indirect property acquisitions through corporate structures or assignment contracts.

Closing loopholes for foreign-controlled companies

The second AKEL proposal focuses on modernising the Immovable Property Acquisition (Aliens) Law. It abolishes provisions that currently allow indirect acquisitions without Cabinet approval and introduces stricter enforcement mechanisms.

Notably, it expands the definition of a “foreign-controlled company” to include any entity whose beneficial owner, under anti-money laundering legislation, is a third-country national. The proposal also clarifies that Cypriot or EU-registered companies controlled by foreign interests should not be exempt from restrictions, closing legislative loopholes that have enabled third-country nationals to acquire property indirectly.

Under this proposal, the Council of Ministers would determine, via regulations, the conditions and criteria under which third-country nationals may acquire immovable property. Each application would be assessed individually, with decisions formally communicated to applicants.

The following limited exemptions are envisaged for third-country nationals buying property:

One apartment or house of up to 200 sq m

One shop of up to 200 sq m

One office of up to 300 sq m

The proposal also introduces a blanket ban on property acquisitions, direct or indirect, by foreign nationals near the ceasefire line or in areas of critical infrastructure, including ports, airports, beaches and military facilities.

Third proposal: One home only for third-country nationals

The third bill, submitted by MPs of the Parliamentary Audit Committee, also amends the Immovable Property Acquisition (Aliens) Law. It proposes that third-country nationals be permitted to acquire only one house or apartment, whether under construction or completed, on a single plot of land.

It further introduces ownership thresholds for legal entities, requiring at least 51% of share capital, voting rights or control to be held by Cypriot, EU or EEA nationals, or by companies established and headquartered within the European Economic Area, including Cyprus.

In addition, the proposal bans foreign nationals from acquiring forest or agricultural land altogether.

Housing a priority for Cyprus and the EU

Audit Office data presented to the Parliamentary Audit Committee indicates that foreign purchases accounted for 27% of all property sales in 2024—a figure believed to underestimate the true scale, as it excludes transactions involving Cypriot companies with foreign shareholders. Similar information was also provided to Parliament by the Minister of Interior in response to MPs’ questions.

Housing policy will be a key priority during Cyprus’ EU Presidency, beginning on 1 January 2026, reflecting wider concerns across EU member states over affordability, supply constraints and speculative foreign investment.