Cyprus proposes restricting property purchases for non-EU citizens

The Cyprus parliament has introduced a series of bills that could significantly change the rules for buying real estate for citizens of countries outside the European Union.
There are three initiatives — two from the AKEL party and one cross-party initiative signed by eight MPs. All aim to tighten control over foreign investments in real estate and combat hidden ownership through Cypriot intermediary companies.

The main idea is to limit the amount of property available to non-EU citizens. According to the bills, foreigners will be able to purchase no more than one property: an apartment, a house, or an office.
It is also proposed to ban the sale of agricultural and forest land, as well as plots located near the ceasefire line and areas with strategic importance for state security.

AKEL insists on stricter control over transaction registration. Under one of their bills, the Land Registry Department would be required to refuse the registration of sales, exchanges, or transfer agreements if they violate the restrictions established by the law on foreign ownership of property.
The goal is to end the practice where foreign investors conduct transactions through Cypriot intermediaries or companies with opaque structures.

The second AKEL bill proposes to expand the definition of “foreign company,” including all legal entities whose ultimate beneficiaries under AML (anti-money laundering) laws are non-Cypriots.
It is also clarified that Cypriot or European companies under foreign control will not be excluded from this definition.

AKEL proposes to establish the conditions and criteria for property purchases by foreigners in special regulations to be approved by parliament.
This also repeals some outdated rules allowing the acquisition of large plots without government approval.

Foreigners will be allowed to purchase without Council of Ministers approval:

• one apartment or house up to 200 sq. m,

• one shop up to 200 sq. m,

• or one office up to 300 sq. m.

Similar exemptions will apply to foreign companies if they fall under the established limits.

However, purchasing agricultural or forest land, as well as plots near military facilities and critical infrastructure, is strictly prohibited.

A separate bill signed by MPs also proposes limiting third-country citizens to purchasing only one apartment or house on a single plot.
Permission for purchase will be one-time — it cannot be transferred, extended, or used to acquire another property.

For legal entities, a requirement is introduced: at least 51% of shares or voting rights must belong to citizens of Cyprus or other EU/EEA countries.

The authors of the initiatives claim that the new rules will stop “hidden purchases” and prevent Cypriot firms from acting as intermediaries for foreign investors.
Additionally, the laws are intended to ensure transparency in transactions and control over the actual landowners, which is particularly important given growing foreign interest in Cypriot real estate.

“This is not only an economic issue but also a matter of national security,” emphasized the MPs supporting the package. “The state must know who and for what purpose is acquiring large plots of land on the island.”