While EU citizens enjoy the freedom to purchase unlimited properties in Cyprus, non-EU nationals remain subject to legal restrictions on property ownership. These limitations stem from the Acquisition of Immovable Property (Aliens) Law, Chapter 109, which has governed foreign property purchases for decades.
Evolution of Property Ownership Rules
To circumvent these restrictions, many non-EU nationals have opted to purchase property through Cypriot-registered companies, which are legally treated as local entities. This loophole allows them to acquire multiple properties without limitations.
Concerns Over Rising Property Prices
This practice has significantly impacted the real estate market, contributing to rising property prices and making homeownership increasingly difficult for local buyers, particularly young families.
The House Interior Committee recently debated this issue, reviewing a proposed legislative amendment introduced by Famagusta DISY MP Nikos Georgiou. The proposed law aims to modernize regulations on foreign property acquisitions while addressing concerns over affordability and market stability.
Key Insights from the Discussion
Proposed Legislative Changes
To tighten oversight on foreign property purchases, the proposed amendments include:
Recent Legal Cases Highlight System Gaps
The discussion was further fueled by recent cases exposing loopholes in the current system. Notably, the sons of Simon Mistriel Aykut, who is wanted for property usurpation in occupied Cyprus, managed to acquire assets worth €1.2 million in Larnaca and Nicosia via a Cypriot-registered company before authorities intervened and froze the assets.
Global Comparisons & Precedents
Cyprus is not alone in seeking stricter controls on foreign property ownership. Several EU nations have implemented restrictions for economic and national security reasons:
As Cyprus evaluates these legislative amendments, the goal is to strike a balance between encouraging foreign investment and ensuring housing affordability for local residents.
Source: www.news.cyprus-property-buyers.com