Cyprus is revisiting legislative efforts to tighten oversight and impose stricter limits on foreign real estate acquisitions. The House Interior Committee has reopened debate on four previously deferred bills, seeking to close regulatory loopholes and curb the growing share of domestic land passing into overseas hands.
The parliamentary initiative coincides with official market data indicating that foreign demand is expanding at a faster pace than the broader real estate sector.
Key Legislative Changes Under Consideration
The four proposals before the Interior Committee aim to modernize the framework, address corporate ownership loopholes, and restrict acquisitions in sensitive areas.
-
Closing the Corporate Loophole: Under current law, non-EU buyers can bypass purchasing limits by setting up shell or operating companies in Cyprus or another EU member state. Two proposals introduced by AKEL would redefine a foreign-controlled company based on ultimate beneficial ownership. A separate cross party proposal requires at least 51% of share capital, voting rights, or operational control to be held by EU/EEA citizens.
-
Restrictions on Land and Sensitive Zones: The bills propose a total ban on foreign purchases of agricultural and forest land, alongside prohibition of acquisitions adjacent to the ceasefire line or critical national infrastructure.
-
Acquisition Caps for Non-EU Individuals: Non-EU citizens would be restricted to buying a single home or apartment on a single plot.
-
Streamlined Exemption Thresholds: Foreign buyers would no longer require Cabinet approval for individual residential properties, offices, or commercial shops up to 200–300 square meters.
-
Enhanced Due Diligence & AML Compliance: A bill submitted by DISY MP Nikos Georgiou would formalize the role of licensed lawyers, accountants, and real estate agents in submitting applications, requiring strict Anti-Money Laundering (AML) checks prior to filing.
Foreign Market Share Reaches 41.3%
The push to tighten legislation follows a report by audit firm Delfi Partners, which highlights a sharp rise in international acquisitions:
-
Expanding Market Share: Foreign buyers accounted for 41.3% of all sales contracts (4,980 transactions) during the first seven months of 2026, up from 39.2% over the same period in 2025.
-
Outpacing National Growth: While overall property market sales grew by 14.1%, foreign acquisitions surged by 20.3% year on year. July 2026 recorded a peak of 829 international sales contracts.
-
Buyer Demographics: Of the 4,980 contracts registered between January and July 2026, 3,293 involved non-EU nationals and 1,687 involved EU citizens.
A separate September 2025 Audit Office special report confirmed that existing statistics undercount true foreign market participation because acquisitions made via local corporate entities are logged as domestic transactions.
Next Steps
The Interior Committee will continue reviewing the four bills to determine whether the proposed amendments will move to a full vote in the House of Representatives.
Source: Stockwatch.com.cy