The Cyprus Parliament is preparing a package of bills aimed at tightening control over real estate purchases by foreign individuals and companies. The changes are expected to be adopted as early as April 2026 — before the current parliament is dissolved ahead of the May elections.
Authorities are concerned about the growing influence of foreign capital on the housing market and strategic infrastructure. Despite the closure of the “golden passport” program, the real estate sector remains a key driver of the economy and continues to attract investors, especially from non-EU countries.
According to the Auditor General, in 2024, more than a quarter of all property transactions in Cyprus were made by foreign buyers. The most active investors are citizens of Lebanon, Israel, Russia, and China. The actual share of foreign buyers may be even higher, as statistics do not include companies registered in the EU or Cyprus but controlled by foreign beneficiaries.
The rise in demand for Cypriot real estate is largely linked to global instability. Minister of Interior Constantinos Ioannou noted that conflicts in the Middle East and the war between Russia and Ukraine have increased interest from foreign investors, as Cyprus is seen as a safe haven for capital.
The proposed reforms include measures to strengthen oversight of foreign property purchases. Key proposals include banning purchases in strategically sensitive areas such as zones near airports, military facilities, the “Green Line,” and coastal regions. The reforms would also expand the powers of the Land Department, allowing it to reject transactions that violate existing restrictions.
Other proposals under consideration include introducing minimum time intervals between property purchases by foreigners and potentially limiting the number of land plots a single foreign investor can acquire. Supporters of these measures argue that they will reduce speculative transactions, where properties are bought under the pretext of personal use but later used for commercial purposes.
Minister Ioannou clarified that restrictions may be tailored to specific urban zones and areas of particular security or public interest.
At the same time, authorities emphasize the need for a balanced approach. Foreign investment remains a critical source of capital for Cyprus, supporting the construction sector, banking, and services. Overly strict restrictions could drive investors to other Mediterranean countries, whereas moderate regulation could help the market become more stable and less dependent on speculative demand.
The changes may also encourage more interest from European buyers, who could potentially benefit compared to investors from third countries.
Meanwhile, the Cyprus Employers and Industrialists Federation (OEB) advocates for a more flexible approach. The federation proposes allowing foreigners to purchase land plots up to 4,000 square meters without restrictions on the size of the home and maintaining the ability to buy properties in coastal areas. OEB emphasizes that investments in this segment do not address local housing needs and should therefore remain accessible to foreign investors.
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