The Cypriot Parliament is considering bills that could significantly change the conditions for purchasing real estate for citizens of countries outside the European Union. The initiatives provide for quantitative limits on properties, geographical restrictions, and requirements for transparency in transactions. Learn more about the proposed restrictions, statistics on foreign purchases, and how to prepare for possible changes in the Cyprus real estate market

The Cypriot real estate market has remained one of the most attractive for foreign investors in the Mediterranean for many years. However, today the island is on the verge of significant legislative changes that could radically revise market access for buyers from countries outside the European Union.

In this article, we discuss the proposed restrictions, who they will affect, and what statistics on foreign purchases prompted lawmakers to take action.

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What is the Cypriot parliament proposing regarding the purchase of real estate by foreigners?

Two bills from the AKEL party have been submitted to the Cyprus House of Representatives, aimed at restricting the right of third-country nationals (i.e., countries outside the EU) to purchase real estate on the island. The initiatives provide for clear quantitative limits: one residential property up to 200 square meters, one office up to 300 square meters, and one store up to 200 square meters — this is the maximum that a foreigner from a third country can purchase.

A separate provision proposes to completely deprive companies under foreign control of the right to purchase residential real estate. This means that purchases through legal entities with non-resident beneficiaries will become impossible. Discussion of the bills in the relevant parliamentary committee is expected after the Epiphany holidays.

Transparency of real estate transactions in Cyprus: mandatory disclosure of beneficial ownership

One of the key elements of the proposed changes is the requirement for mandatory disclosure of the ultimate beneficial owner when concluding a transaction. This provision is aimed at countering the practice whereby real estate is actually purchased by non-residents from third countries, but is formalized through Cypriot or other European companies formally registered in the EU.

This scheme allowed existing restrictions to be circumvented and artificially lowered the real share of foreign purchases in the overall market statistics. The introduction of transparency regarding beneficiaries should close this legal loophole and make the market more controllable by the state.

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Prohibition on the purchase of land and real estate in strategic areas of Cyprus

The bills also contain proposals for geographical restrictions. Foreign buyers from non-EU countries are to be banned from purchasing real estate in areas near critical infrastructure facilities, in particular near ports and airports, as well as in coastal and buffer areas of the island.

In addition, there is a complete ban on the sale of forest and agricultural land to buyers from third countries. The authors of the initiatives justify these measures by the need to take into account security factors and protect Cyprus' strategically important land resources from uncontrolled alienation in favor of non-residents.

Who buys the most real estate in Cyprus: statistics

According to the audit service, in 2024, out of 15,797 real estate transactions, 4,321 — or about 27.4% — were made by buyers from countries outside the EU. At the same time, the report notes that the actual share of foreign purchases may be even higher, as some transactions are conducted through companies registered in the EU or directly in Cyprus.

Statistics on the most active foreign buyers for the period from September 2024 to September 2025 were presented in parliament by Interior Minister Konstantinos Ioannou. Among the leaders are citizens of the United Kingdom, Israel, and Russia, as well as notable activity by citizens of Greece, Lebanon, and Romania. In regional terms, the British bought the most in Paphos (890 deals), followed by Israelis (683) and Russians (327). In Limassol, Russians (846 transactions) and Israelis (571) led the way. Ukrainian citizens have also been among the top 10 most active foreign buyers of real estate on the island in various years.

The goal of the legislative changes: housing affordability and security in Cyprus

The AKEL party, which initiated the bills, directly links the proposed restrictions to the problem of housing affordability for local households. Increased demand from foreign buyers with significant capital is putting pressure on prices, making home ownership increasingly less affordable for ordinary Cypriots.

The second argument in favor of the restrictions is security. The uncontrolled sale of land and real estate near strategic facilities creates potential risks that the state seeks to minimize. Thus, the proposed changes combine social and security components and reflect a broader discussion about the balance between market openness and the protection of national interests.

Against the backdrop of possible legislative changes, the importance of legal support for real estate transactions in Cyprus is growing exponentially. A real estate lawyer from the Visit World portal is a specialist who guides the client at every stage: from checking documents and contracts to establishing ownership rights and protecting interests in disputed situations.

A lawyer will help you understand the status of the property, check the structure of the transaction for compliance with current and future legislation, and advise on the rules for foreign buyers from countries outside the EU. This assistance is especially relevant for those who are considering investing in Cypriot real estate and want to understand in advance which restrictions are already in place and which are only planned.

Request a consultation with a real estate lawyer from Visit World and get clear answers to your questions before signing any documents!

Reminder! Cyprus has joined the EU countries that issue Blue Cards — residence permits for highly qualified professionals from third countries. In this article, we explain who is eligible for a Cyprus Blue Card, what rights it grants, how to apply, and why this program is considered a beneficial path to legal residence and work in Europe. What advantages does the Cyprus Blue Card offer, how to quickly complete the paperwork, and where to start — we explain everything at the link.

Photo: iStock

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