The Cyprus Chamber of Commerce and Industry (CCCI) has called for adequate consultation with all stakeholders before the bill regulating the acquisition of immovable property by foreign nationals is advanced for a parliamentary vote.
It warns that proceeding without proper stakeholder engagement could lead to unintended consequences for investment and the property market.
The bill, tabled by AKEL and brought to the House plenary on 2 April, seeks to impose significant restrictions on property purchases by non-EU nationals. It prohibits the purchase of forest and agricultural land by foreigners, limits foreign buyers to one residential property and closes loopholes that have allowed multiple property acquisitions through corporate entities.
House Interior Committee chairman Aristos Damianou has noted that recent data show one in two land sales in Cyprus involves third-country nationals, and that property prices have risen sharply due to foreign purchases, particularly in urban centres.
In its announcement, the CCCI said the revised legislative framework touches on critical areas including investment activity, economic competitiveness and the country’s international image. It said any modification of the existing legislative framework must be preceded by in-depth and well-structured consultation with all stakeholders to avoid decisions that may have negative side effects. The business community has broadly supported greater transparency but warned that overly strict restrictions could discourage legitimate foreign investors, particularly those from the Middle East and Asia.
The Chamber also pointed to the current unstable international environment, stressing that decisions on issues of this nature must be careful, balanced and evidence-based.
The CCCI said the timely involvement of social partners is not only an institutional obligation but a basic prerequisite for effective and lasting policy. It called for the revised legislative framework to be placed immediately before the competent bodies and for adequate time to be given for in-depth consultation before the bill is put to a parliamentary vote.
The Chamber said it is ready for an immediate meeting with the competent committee to present the business community’s positions and recommendations.
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