As the 2026 legislative calendar begins, the Cypriot Parliament is preparing to challenge the era of unrestricted foreign property investment. On January 15, the House Interior Committee will convene to dissect three pivotal bills designed to curb the “uncontrolled” acquisition of land and housing by third-country (non-EU) nationals. This movement comes as the national housing crisis intensifies, with local affordability reaching a breaking point.
According to data from the Audit Office and Cyprus Property News, nearly 27% of all real estate transactions in 2024 were attributed to non-EU buyers, a trend that persisted through 11 months of 2025 with a 26% market share. Paphos and Larnaca remain the primary focal points for these international acquisitions.
The AKEL Proposals: Eliminating the “Proxy” Loophole
General Secretary Stefanos Stefanou has spearheaded two of the three bills, focusing on transparency and strict physical limits. The core objective is to dismantle corporate structures that have historically allowed foreigners to bypass ownership caps.
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Redefining Control: The bills expand the definition of “foreign-controlled companies” to include any entity where the ultimate beneficial owner is a third-country national, regardless of where the company is registered.
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Gatekeeping at the Registry: A proposed amendment to the Immovable Property (Transfer and Mortgage) Law would empower the Land Registry to flatly reject any transfer that breaches these new foreign ownership rules.
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Strategic Prohibitions: A blanket ban would be instituted on any foreign purchase—direct or indirect—near the “Green Line” ceasefire zone, coastal strips, or critical infrastructure like airports and ports.
Cross-Party Alliance: One Plot, One Home
The third legislative initiative, co-signed by MPs from DIKO, DISY, and DIPA, mirrors the restrictive sentiment but focuses on plot-level density. This bill proposes that third-country nationals be limited to a single residential unit on any given plot of land.
Proposed Ownership Thresholds & Restrictions
| Asset Type | Proposed Limit / Rule |
| Residential Units | 1 Apartment or House (max 200 sq. m.) |
| Commercial Space | 1 Shop (max 200 sq. m.) |
| Office Space | 1 Office (max 300 sq. m.) |
| Corporate Exemption | Must be >51% EU/EEA owned/controlled |
| Natural Resources | Total Ban on Forest and Agricultural land |
Context: National Interest vs. Foreign Investment
The surge in legislative activity marks a significant shift in Cyprus’ economic philosophy. While foreign capital was once the lifeblood of the post-2013 recovery, lawmakers now argue that the “mass sale of Cypriot land” endangers local sovereignty and fuels social inequality.
With Cyprus set to take over the EU Presidency on January 1, 2026, the government aims to position housing affordability as a hallmark of its leadership, aligning with broader European concerns regarding speculative real estate bubbles.
Source: Cyprus Property News