Foreign investors are circumventing Cyprus property ownership restrictions by purchasing land through companies, driving up real estate prices and affecting local buyers, particularly young couples seeking homes.
The issue will be debated in parliament today as the House Interior Committee examines proposed legislation by Famagusta DISY MP Nikos Georgiou aimed at modernising property acquisition rules for foreigners.
While current law requires cabinet approval for foreign property purchases and limits land acquisition to two “skales” (measurement unit) for residential or business premises, buyers are reportedly bypassing these restrictions by making purchases through corporate entities and trusts.
The proposed amendments would introduce new due diligence requirements, requiring lawyers, accountants, and real estate agents to verify foreign buyers’ backgrounds, similar to anti-money laundering regulations.
Senior officials from the Interior Ministry, Land Registry, Ministry of Finance, Law Office, and the Registrar of Companies will attend the committee meeting to address concerns about the law’s effectiveness.
Recent cases highlight oversight gaps in the current system. The two sons of Simon Mistriel Aykut, wanted for property usurpation in occupied Cyprus, had acquired assets worth €1.2 million in the Republic, including several properties in Larnaca and Nicosia through a company before authorities froze the assets.
While EU countries generally allow foreign property ownership, many impose restrictions.
Finland is considering stricter rules for national security reasons, while Greece requires special permits for border area purchases, and the UK maintains safeguards related to taxation and money laundering prevention.
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