Cypriot lawmakers have restarted high level discussions aimed at reforming the legal framework governing foreign property acquisitions. Framed by MPs as a pressing “national and patriotic issue,” the Parliamentary Committee on Interior has placed three legislative proposals back on the agenda following the recent parliamentary election restart.
The primary objective of the proposed reforms is to eliminate regulatory loopholes that allow international buyers to acquire vast tracks of Cypriot land through shell or intermediary companies registered in Cyprus.
Core Proposals Under Review
The three bills on the table aim to restrict both the scale and location of foreign owned real estate while strengthening mechanisms to track ultimate beneficial owners (UBOs):
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UBO Identification and Inter Agency Tracking: Under proposals backed by AKEL, the Department of Lands and Surveys will coordinate directly with the Registrar of Companies to identify the actual foreign individuals behind legal entities acquiring real estate.
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Strict Zoning and Area Bans: The promoted text includes blanket prohibitions on foreign acquisitions of agricultural and livestock land, as well as strict bans on land located outside designated development zones, adjacent to the ceasefire line, or near vital national infrastructure (including ports, airports, and coastal fronts).
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Transfer Controls: Strengthening enforcement at the Land Registry level during the property transfer process to prevent non-compliant applications.
Substantive parliamentary debates on the integrated text are set to deepen in October to give new committee members time to review past proceedings.
Official Real Estate Data Highlights Market Surge
Concerns over foreign market penetration are backed by expanding transaction numbers from the Land Registry Department:
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Long-Term Market Growth: Annual real estate sales to foreign buyers rose from 4,367 transactions in 2018 to 7,255 in 2025, representing a 66% increase.
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First-Half 2026 Acceleration: Foreign purchases reached 4,151 transactions in the first six months of 2026, marking a 22.5% increase compared to the 3,388 recorded during the same period in 2025.
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True Market Share: Committee Chairman Aristos Damianou noted that foreign interests account for at least 1 in every 2 transactions in the Republic, with the true figure estimated to be well above 50% when unrecorded assignment contracts are factored in.
Stakeholder and Party Perspectives
| Stakeholder / Party | Key Position & Perspective |
| Aristos Damianou (AKEL / Committee Chair) | Termed foreign acquisition a “patriotic and social issue,” citing housing price pressures and national security concerns given Cyprus’s geopolitical realities. Insists regulations must cover legal entities to be effective. |
| Konstantinos Ioannou (Minister of Interior) | Acknowledged the need for stricter regulations and enhanced transparency, while emphasizing that safeguards must avoid unintended economic drag on high-quality foreign investment. |
| Nikoletta Constantinou (DISY) | Backed stronger monitoring controls, but cautioned against horizontal bans that could harm investment in specific regions like Paphos. |
| Andreas Papacharalambous (ELAM) | Supported maintaining open investment channels, but emphasized enforcing clear rules against unchecked economic penetration. |
| Odysseas Michaelides (ALMA) | Linked high end foreign property demand to rising home prices and rents. Highlighted that the €300,000 “Golden Visa” program, combined with potential Schengen Zone accession, could amplify housing market pressures. |
Next Steps
Parliamentary parties and committee members will review the consolidated texts throughout September ahead of detailed, clause by clause debates scheduled for October.
Source: Stockwatch.com.cy