Three bills to restrict property purchases by foreigners submitted to parliament

Three bills aimed at tightening regulations on property purchases by third-country nationals have been registered in the Cyprus parliament. The initiatives were put forward by MPs from different parties — AKEL, DISY, DIKO and DIPA.

AKEL's proposals:
The party submitted two separate bills signed by Secretary-General Stefanos Stefanou. The first bill amends the “Law on the Acquisition of Immovable Property by Foreigners” and updates its key provisions.

Key proposals include:

• expanding the definition of “company controlled by foreigners” — including entities where the ultimate owner is a foreigner;

• recognising Cypriot and European companies under foreign control as foreign companies;

• introducing clear criteria and limitations for real-estate transactions, to be approved by parliament;

• abolishing outdated provisions, including permissions to purchase large land plots;

• allowing foreigners, without Council of Ministers’ approval, to purchase one residence or apartment up to 200 m², a shop up to 200 m² or an office up to 300 m²;

• granting similar rights to companies controlled by foreigners;

• banning the purchase of agricultural and forest land, as well as land near the cease-fire line and strategic sites.

According to the sponsors, the proposed amendments aim to eliminate loopholes that allow the current law to be bypassed and to increase transparency of transactions.

The second AKEL bill concerns the “Law on Transfer and Mortgage of Immovable Property.” It stipulates that the Director of the Land Registry Department will not be able to accept sales or transfer of ownership transactions if the property falls under restrictions imposed by the law on acquisition of real estate by foreigners. This is intended to prevent the use of shell companies to circumvent the rules.