Cyprus is moving to close legal loopholes that let foreigners buy property through local companies without government approval, after the Russia-Ukraine war and regional geopolitical upheaval drove a reported increase in foreign land purchases.
Interior Minister Konstantinos Ioannou told a parliamentary committee the government wants to consolidate three bills targeting the gaps, particularly provisions that allow indirect property acquisition through Cyprus companies and other entities acting as intermediaries.
The minister said the phenomenon had increased significantly due to geopolitical developments in the region and the Russia-Ukraine war. Safeguards are needed to ensure balance without creating risks to social cohesion, he added.
Current legislation has clear restrictions on land acquisition by individuals but appears unable to regulate legal entities, with a series of gaps requiring improvement, according to Ioannou. The ministry has identified provisions with gaps and interpretative ambiguities.
The bills, proposed by AKEL general secretary Stefanos Stefanou and eight MPs including Zacharias Koulias and Kyriakos Hadjiyiannis, would require the Land Registry director to refuse property transfers when restrictions under the Acquisition of Immovable Property (Aliens) Law apply.
They would also abolish provisions enabling indirect property acquisition by foreigners without cabinet permission, introduce control mechanisms, and modernise rules to prevent Cyprus companies from acting as intermediaries for foreign property buyers.
Committee chair Aristos Damianou said members had agreed in principle, with the aim of bringing legislation to the plenum with broad support before the current parliament’s term ends.
The Interior Ministry has begun working on a revised framework that would include clearer definition of property acquisition terms and maximum property areas that can be acquired, Ioannou said.
Time limits between applications by individual applicants would be examined to prevent abuse and conversion from residential to business purposes. Restrictions on property acquisition in specific planning zones or areas with security and public interest sensitivities would also be considered.
The minister warned that changes to the legal framework would have broader implications across state policies and economic sectors that should not be assessed piecemeal.
A Finance Ministry representative said the ministry understood concerns about foreign property acquisition and supported the interior minister’s recommendations.
A representative from the employers’ federation (OEB) suggested allowing acquisition of a maximum of two land plots or residential units with maximum land area of 4,000 square metres, with no area restriction for houses or flats. The representative also requested beaches be excluded from any prohibition.
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