Cyprus prepares restrictions on real estate purchases by foreigners

Third-country nationals and foreign companies have reportedly intensified attempts to acquire property in Cyprus amid the preparation of a new legislative initiative introducing restrictions on such transactions.

The law is currently in its final stages of preparation, combining proposals from the AKEL party, MPs from other parties, and the Ministry of Interior's position.

Future restrictions include:

• A ban on purchasing property near critical infrastructure (military bases, ports, airports, beaches, etc.);
• A ban on acquiring land in agricultural and rural zones;
• Establishment of a maximum area for properties that third-country nationals can buy;
• An obligation to maintain ownership of the acquired property for at least 5 years.

Completed transactions or those already submitted to the Land Registry will not be affected, as the law will not be retroactive.

Aristros Damianou, Chairman of the House Interior Committee, stated that a significant portion of the coastal areas in Larnaca and Limassol has already passed into the hands of third-country nationals, including through development companies.

He emphasized that, given the partial occupation of Cyprus, land control has strategic importance, and rising real estate prices have turned into a "bubble," especially in cities.

The issue of informal transactions abroad and hidden intermediary activities was also noted.

Michalis Persianis, Head of the Fiscal Council, pointed out that attracting foreign capital should not be the sole goal. According to him, without a clear strategy, this could lead to increased inequality and economic distortions.

The bill is expected to be put to a vote in the coming weeks — before the dissolution of parliament in early April.