Three draft laws have been submitted to the House of Representatives as part of an ongoing political effort to introduce tighter restrictions and enhanced oversight on property sales to foreign nationals and companies with foreign interests.
The issue has drawn significant parliamentary attention in recent months, as available data presented before the House reveal the growing scale of the matter. Two of the proposed bills were tabled by AKEL, while a third joint proposal was submitted by DIKO, DISY, and DIPA.
AKEL’s proposals
AKEL has submitted a package of two bills aiming to strengthen control over the acquisition of real estate by foreign nationals and foreign-controlled companies.
According to the party’s statement, the goal is to “put the brakes” on unregulated land purchases, protect housing rights for low and middle-income citizens, and safeguard both the economy and national security.
The proposals seek to modernise and tighten the current legal framework governing property ownership by foreigners.
The first bill redefines key terms and procedures, aiming to close loopholes that allow indirect or unregulated land acquisition. It broadens the definition of a “foreign-controlled company” to include any entity whose ultimate beneficial owner, under anti-money laundering legislation, is a foreign national. This applies even to Cypriot or European companies under such control.
Additionally, it introduces specific conditions and criteria for the issuance of permits allowing foreigners to acquire property—criteria that would be detailed and approved by Parliament through secondary regulations.
The bill also abolishes provisions that have been open to interpretation, including those concerning the acquisition of large land areas.
A significant change exempts foreign individuals from the requirement to obtain Cabinet approval when purchasing one residence or apartment of up to 200 sq. m., a shop of up to 200 sq. m., or an office up to 300 sq. m. Similar exemptions apply to foreign-controlled companies.
Particular emphasis is given to banning the acquisition of forest and agricultural land, as well as properties adjacent to the buffer zone or to critical national infrastructure, touching on national security concerns.
Stricter oversight at the transfer stage
AKEL’s second bill amends the Immovable Property (Transfer and Mortgage) Law to ensure legal compliance from the source.
It stipulates that the Director of the Department of Lands and Surveys may not accept any transfer or registration of a sale, exchange, or assignment contract if it falls under the restrictions imposed by the Foreign Acquisition Law.
This measure seeks to prevent indirect property acquisitions via corporate structures or assignment contracts, while ensuring transparency regarding the ultimate beneficial owners of legal entities.
Together, the two proposals aim to make the existing system more effective, introduce robust control mechanisms, curb abusive practices, and enhance transparency in the land and property market.
Joint proposal by DIKO, DISY, and DIPA
A separate bill, submitted jointly by DIKO, DISY, and DIPA, introduces substantial restrictions on property purchases by individuals and companies from third countries.
The bill proposes to revise and modernise the Immovable Property Acquisition (Aliens) Law, setting clear limits on what non-EU citizens can buy, just a single residence or apartment on a single plot.
It also restricts property acquisition by legal entities, requiring that at least 51% of ownership or voting rights be held by citizens of Cyprus, another EU member state, or an EEA contracting state.
Furthermore, the bill prohibits the purchase of forest and agricultural land by foreign nationals.
The proposal is co-signed by MPs from all three parties, including Zacharias Koulias, Panicos Leonidou, Pavlos Mylonas, Chrysantos Savvides, Christos Orfanides (DIKO); Kyriakos Hadjiyiannis and Nikos Sykas (DISY); and Alekos Tryfonides and Michalis Giakoumis (DIPA).
According to the sponsors, the proposed legal reforms are necessary to prevent the creation of Cypriot “front” companies acting as intermediaries for foreign property acquisitions, while protecting the agricultural sector and rural landscape.