Cyprus is pushing forward legislation to vet companies with Turkish interests seeking registration, after it emerged that dozens of firms with Turkish shareholders or directors are operating in the government-controlled areas, raising national security concerns.
MP Marinos Sizopoulos, who submitted the bill, told a parliamentary committee the issue was serious, warning that such companies could operate as espionage fronts and acquire Greek Cypriot land — not only in the free areas but also in the occupied territories.
He cautioned that, over time, a significant number of properties could pass into Turkish hands, which could under certain conditions strengthen Turkey’s negotiating position.
The Registrar of Companies confirmed that concerns exist over the registration of firms by third-country nationals, particularly Turkish citizens, and said the bill is currently with the Law Office for technical review. Under the proposed legislation, the Registrar would have the authority to reject company registration applications on public interest grounds.
A Foreign Ministry representative said authorities are also examining whether some of these companies are active in the occupied areas.
The Department of Lands and Surveys acknowledged distortions in property acquisition by non-Cypriots, particularly by legal entities, and said it co-operates with district officers when property sales involve such companies. For unregistered companies, verification of submitted documents is required.
MP Alexandra Attalidou called for a red-flag screening system at the Lands and Surveys Department for companies involved in property transactions.
The Registrar’s office noted that safeguards covering shareholders, directors and related parties have been in place for 20 years due to recognised risks from third-country land acquisition.
MP Christos Christofidis warned that without action on land alienation, Cyprus would face security consequences it was unprepared for, noting that assets ranging from hospitals to hotels and banks were already being sold.
He called for the swift passage of four legislative proposals submitted by AKEL and MPs from other parties that would impose restrictions on property acquisition in sensitive areas.
The committee’s chair said the Lands and Surveys Department must be given stronger legal tools to handle property transactions involving third-country nationals and companies.
Read more: