Members of parliament’s Interior Committee pressed the government on Thursday to submit a comprehensive bill on property purchases by foreigners. They said any new rules must cover companies and other legal entities, not just individuals.
The committee resumed discussion of law proposals amending the legal framework on the acquisition of property by foreigners. The proposals aim to prevent Cypriot companies being used as intermediaries in property purchases, and to protect farmland and rural communities.
The discussion is expected to continue in 15 days. DIKO parliamentary spokesman Panikos Leonidou warned that if the Interior Ministry did not submit a bill soon, the committee would begin discussing the law proposals already before it within the next fortnight.
Committee chairman Aristos Damianou said the government had been given time to come back with its own proposals. The committee intended to move ahead with urgency, he said, because there was no longer room for delay. Efforts to regulate the matter were restarting at an intensive pace, with the aim of concluding by the end of the year. Consolidated texts of the law proposals had been drawn up last April, but the process was interrupted by the parliamentary elections.
Damianou described the issue as particularly serious, saying it concerned state security, the economy and the country’s future. “We are a semi-occupied state,” he said, noting that part of Cyprus’s territory is occupied by Turkey and part is under the control of the British bases.
Regulating only individuals would be inadequate, he said, unless the rules also covered companies, funds and all those buying in Cyprus in a concealed way.
He stressed the need for criteria and prohibitions on acquiring property. He also referred to sales and transfers through contracts that are often not made public, which he said allowed foreign interests to be advanced either directly or through companies and other intermediary schemes.
Parties call for wider rules
DISY parliament member Nikoleta Konstantinou said there was little point in debating whether an individual could buy 1,000, 2,000 or 4,000 square metres if the real beneficial owner could still acquire property through a company.
She raised concerns that the text under discussion focused on restrictions for individuals, which she said could undermine the law’s effectiveness. The approach had to cover both individuals and legal entities, with particular emphasis on who ultimately owns and controls each transaction.
The proposals were being examined with the utmost seriousness, Konstantinou said, as they concerned national security and the Republic’s strategic interests, but could also have a serious impact on the economy and investment. Given the complexity of the issue, the government should have presented a comprehensive plan based on European law, the property market and the country’s investment policy.
She said DISY had “serious reservations” about the level, scope and type of restrictions proposed. The aim should be to protect national security and strategic interests without unjustified or disproportionate restrictions that harm the economy and investment, she said.
Leonidou said rules on land purchases by third-country nationals were urgently needed, as the phenomenon had taken on “uncontrolled proportions” and was causing public concern. He said DIKO had submitted specific proposals some time ago, and that the discussion, interrupted by the elections, had resumed on Thursday. The Interior Ministry should immediately submit a bill covering all aspects of the problem, including both individuals and legal entities, he said.
He said he was optimistic that the decisions taken would not hinder growth and the economy.
Information from Cyprus News Agency
