In Cyprus, they want to change the rules for foreigners buying real estate. In particular, the authorities plan to allow them to purchase no more than two plots on the island with a total area of up to 1.1 thousand m2. As became known recently, the new bill is at the final stage of discussion.
What will change for foreigners
The new law is aimed at tightening control over the purchase of real estate by foreign citizens. In addition to the area limit, the authorities plan to completely prohibit the purchase of agricultural and forest land, as well as properties located near important state zones.
Plots located near the ceasefire line, as well as near key infrastructure, including ports, airports, military bases, and strategic facilities, will fall under the ban. This is connected not only with security issues, but also with the need to maintain control over the country’s territory.
Why Cyprus is changing the rules of the game
According to Aristos Damianou, Chairman of the Parliamentary Committee on Internal Affairs, for many years the Cyprus real estate market effectively remained insufficiently controlled, which led to active land purchases by foreigners. In recent years, the situation has become especially noticeable: according to various estimates, up to half of purchase and sale transactions involve citizens of third countries.
Experts note that the growth in foreign demand has led to an increase in housing prices, especially in popular regions such as Limassol and Paphos. This makes access to real estate more difficult for local residents and increases social tension.
Strengthening control and transparency
The new law also provides for closing existing “loopholes” that allowed foreigners to bypass restrictions through intermediaries or companies without obtaining permission from the government. The introduction of stricter criteria and verification mechanisms is planned in order to make the market more transparent and controlled.
The authorities emphasize that the goal of the changes is not to stop investment, but to balance the market and protect national interests. At the same time, discussion of some details, including the permitted building area for housing, offices, and commercial properties, is still ongoing.
What this means for the real estate market
It is expected that the new rules could significantly change the structure of demand in the Cyprus real estate market. On the one hand, the restrictions may reduce interest from foreign investors, especially from countries outside the EU. On the other hand, this could stabilize prices and make housing more affordable for local residents.
Against the backdrop of growing global interest in real estate investment and relocation programs, Cyprus is trying to find a balance between attracting capital and protecting its resources. If the law is adopted, it will become one of the most significant changes in the country’s real estate market in recent years and may set a new direction for its development.