Foreign buyers outside the EU accounted for 27% of total property sales in Cyprus in 2024, according to figures presented today by the Audit Office during examination of a special report on the control of property acquisition by foreign nationals before the Parliamentary Audit Committee. Paphos led these sales in 2024, whilst Larnaca ranked second.
Speaking before the committee, the Audit Office representative referred to the gaps and shortcomings identified and emphasised the impacts, particularly on housing access.
A Ministry of Interior representative confirmed that a process is underway to prepare legislation to remedy the weaknesses.
MPs expressed concern about the impacts regarding national security as well as the property market, with committee chairman Zacharias Koulias stating the committee will return to examine the issue in November and requesting interim measures until the legislation is prepared.
Paphos led sales to foreign buyers, Larnaca ranked second
The Audit Office emphasised that gaps were identified in legislation concerning property sales to foreign nationals, as well as a lack of a mechanism to control the use of properties after their sale, whilst it sounded the alarm, calling on the relevant authorities to proceed with taking measures due to increased interest in buying property in Cyprus by foreign nationals.
According to the Audit Office report, property sales to foreign nationals in 2024 amounted to 4,321 out of a total of 15,797, meaning 27%, whilst only 61% of sales concerned Cypriot buyers.
The report emphasises, however, that the 27% “is in reality much larger, since the specific percentage does not include transfers/sales to Cypriot companies with foreign shareholders”.
The corresponding percentage for the first seven months of 2025 reached 26%; therefore, it is expected to exceed last year’s.
This issue particularly engaged committee members, who requested the Registrar of Companies, the Land Registry and other involved bodies to cooperate so that necessary data showing the percentage of companies with foreign interests acquiring property in Cyprus are collected.
MPs expressed their disappointment at the lack of control and mapping mechanisms for property sales trends in Cyprus and raised issues even of national security.
Paphos led property sales to foreign nationals in 2024, with 1,373 (44.19%), which also records the largest volume of property transfers to foreign nationals during the five-year period 2020-2024, with the number of transfers during 2023 and 2024 more than doubling compared to previous years.
Larnaca held second place in sales to foreign nationals outside the EU in 2024 with 1,136 contracts (33.85%), whilst around 26% were in Famagusta and Limassol and only 7.68% in Nicosia.
Foreign nationals outside the EU acquiring property in Cyprus over the past five years (2020-2024) come mainly from Lebanon (16%), China (16%), Russia (14%), Israel (10%), Syria (6%), Egypt (5%), Britain (4%), Ukraine (4%), and Canada (2%).
Furthermore, according to the Audit Office, the percentage of property acquisition by foreign nationals outside the EU increases also due to the possibility of concluding assignment contracts.
It is noted that the total number of assignment contracts, including Cypriots, Europeans and third country nationals, that have been filed with the Department of Lands and Surveys and remain in force amounts to 9,746.
Audit Office finds gaps in legislation and monitoring mechanisms
Maria Pavlou, member of the Audit Office management team, presenting the report before the committee, noted that weaknesses were identified in examining applications for property acquisition by foreign nationals.
She referred to the absence of documented explanations regarding applicants’ financial situation. She also noted that legislation does not provide for control of the source from which funds are drawn to conduct purchases. She further noted that no control is conducted on the use of properties after purchase.
She stated that the Ministry of Interior since 1999 had announced an intention to upgrade the computer system used by the provincial administrations. To date, 25 years later, substantial improvements have not been made and significant weaknesses and shortcomings remain, as the Audit Office found.
The practice followed and shaped through Ministry of Interior circulars, according to the Audit Office, essentially broadens the meaning of owner-occupation and professional premises, allowing acquisition of more property units without the regulations having been amended accordingly, a fact that creates doubts about the legality of the applied practice.
Pavlou emphasised the impacts particularly on housing access, due to the large increase in cost both for purchasing and renting property across Cyprus.
The Audit Office report also notes that shortcomings were identified in the request examination procedure followed, as shaped through relevant circular letters from the Ministry of Interior, resulting in failure to ensure objective, fair and uniform examination of all requests submitted by foreign nationals.
It also recommends establishing monitoring mechanisms, developing a modern computer system for submitting and examining applications, as well as strengthening and training provincial administration staff for effective management of applications.
Ministry of Interior preparing legislation to address weaknesses
Antonis Economides, head of the Local Government Directorate at the Ministry of Interior, confirmed that a process is underway to prepare legislation aimed at remedying the weaknesses identified.
Representing the interior minister at the session, he assured of the existence of political will in this direction, and agreed with MPs who noted they should examine the economic, social and other impacts of mass property purchases by foreign nationals.
Committee chairman and DIKO MP Zacharias Koulias emphasised during the session the need to proceed immediately with these procedures, and stated the committee will return to examine the issue within November.
He also requested examination of the possibility and capability for taking interim measures until the legislation is prepared.
MPs express concerns over national security and housing access
Koulias noted that the situation was allowed to reach extremes, whilst he recalled that the committee has also dealt with the issue of registration in Cyprus of companies with Turkish interests.
AKEL MP Christos Christofides recalled that following discussion on registration of companies with Turkish interests, preparation of legislation is being promoted that will give the Registrar of Companies the right not to register companies with Turkish interests, for national security reasons.
In statements after the committee session, Koulias emphasised that “Cyprus has become an unguarded vineyard”, saying that restrictions that existed previously essentially disappeared through circulars issued by the Ministry of Interior, with the result that “whoever wants buys freely and however they want”, as he said.
However, during the committee session, AKEL MPs Christos Christofides and Giorgos Loukaides referred particularly to the phenomenon’s consequences, noting that beyond property price increases, national security issues arise or even control of the country’s political life, stating that information exists that foreign nationals of specific nationalities buy property very close to sensitive services.
DISY MP Onoufrios Koulla stated during the session that it is significant that the legislative modernisation process has begun. He noted that foreign direct investment in critical sectors is a serious matter, even if it does not concern land purchase, but share purchase.
In statements after the session, AKEL MP Irene Charalambidou said the issue concerning property purchase by foreign nationals could have worse consequences even than the passports case and expressed doubt whether the Parliament will manage before closing for the 2026 elections to correct the institutional gaps identified.
Referring to national security issues raised during the committee session, she said it is not possible for the Registrar of Companies office and the land registry not to have an accurate picture of the percentage of Cypriot land sold to foreign interests.
She also referred to the large property price increase and the acute housing problem, noting that Limassol’s coastline no longer belongs to Cypriots.
“These are issues which should have been corrected many years ago”, she said, adding that “the data submitted by the Audit Office are extremely worrying”.
She called on the relevant ministers and the attorney-general, as legal adviser to the president of the republic, to recommend and proceed with changes.
Independent MP Alexandra Attalidou stated in statements after the committee session that the legislative framework governing property purchase by foreign nationals outside the EU is “full of holes” and that this has multi-level impacts, economic, social, cultural, but also ecological.
She emphasised that it should be examined, among other things, to what degree national security is affected or even interstate relations. She also said it must be ensured that investors meet their tax obligations and do not enjoy more favourable treatment.
She added that cultural impacts should also be examined, noting that it is important for a society to assimilate those who come to reside in a place. She finally raised the environmental dimension, noting that “Cyprus’s coastline becomes prey to development”.
Referring to a question she had sent regarding property purchases in the Makarios Avenue area in Nicosia, she said she had received information that mass property purchases are taking place there by companies whose ultimate owner is not determinable and therefore requested an investigation be conducted.
(information from CNA)
