Cyprus to tighten rules for foreign property buyers — authorities seek to close loopholes

The Cypriot authorities are seriously addressing the outdated and problematic law governing land purchases by foreigners. The Ministry of the Interior has acknowledged that the current regulations are obsolete, full of loopholes, and widely exploited. A new draft law is now being prepared to change everything.

According to Minister of the Interior Constantinos Ioannou, the ministry is already consulting with the Legal Service. The plan is to repeal the existing law and create a modern and transparent legal framework. This statement came in response to a request from MP Nikos Georgiou, who raised the issue back in June.

Currently, foreigners are officially allowed to buy land in Cyprus only if they receive special permission and acquire a plot no larger than two donums (approximately 2,700 square meters). In practice, however, it’s easy to bypass the rule by opening a Cypriot company — enabling unrestricted property purchases.

Lawyers and MPs have long sounded the alarm, as such transactions directly impact the housing market: prices are rising, and it’s increasingly difficult for young Cypriots to find affordable homes. Moreover, the power to approve purchases used to lie with the Council of Ministers, but years ago it was simplified and handed over to local authorities — which only worsened the situation.

MP Georgiou has already submitted his own bill to Parliament. Its goal is to restore order, ensure transparency, and return state control over the process. The ministry, in turn, has confirmed that reform is inevitable and already underway.

Now it all depends on how quickly and decisively the authorities move from words to action.