Cyprus is looking to establish a new law regarding the purchase of real estate by foreigners, as the existing legislation has become outdated. The current law, overseen by Minister of Internal Affairs Konstantinos Ioannou, is limited in scope and only comprises one and a half pages, primarily regulating the acquisition of real estate by non-EU nationals.
Under the current framework, citizens from third countries are allowed to purchase, with Cabinet approval, a maximum of two properties (for example, an apartment and an office) or a land parcel of up to 4,000 square meters for personal residential development.
Nikos Georgiou, a deputy from the DISY party, has highlighted that many foreigners find ways to bypass these regulations. They often utilize assignment contracts to transfer property rights without formal registration, leading to a "grey" market that undermines government oversight and revenue. Additionally, non-EU nationals can establish companies in Cyprus and buy properties through them without restrictions on size or number.
It's important to note that these restrictions do not apply to EU citizens.
In response, Interior Minister Konstantinos Ioannou plans to consult with the Prosecutor General's Office and present a new proposal to the cabinet aimed at replacing the outdated law. As part of this process, gaps in the existing legislation are being examined.
Meanwhile, MP Nicos Georgiou has suggested that if no action is taken by the government, legislators may craft their own bill, potentially allowing third-country nationals to purchase only one property, such as an apartment or house, limited to an area of no more than 200 square meters.
Foreign ownership of real estate in Cyprus is significant, with third-country nationals owning approximately 10% of properties in the Paphos area and about 7% in Larnaca and the free territories of Famagusta. Active buyers include citizens from Israel, the UK, Russia, Greece, and Lebanon.