Real Estate Law

Cyprus is preparing to introduce new rules to the legal framework for land and property purchases by non-EU nationals.

In recent years, Cyprus has seen a notable increase in property acquisitions by third-country nationals. The scale of these acquisitions caused public concern as with other countries in Europe. Although the proposed changes have not yet been finalised, they signal a shift toward tighter regulation of property acquisitions by non-EU individuals and entities. The reforms will aim to strengthen regulatory control without discouraging legitimate investment.

Property acquisitions by third-country nationals are primarily regulated by the Immovable Property Acquisition (Aliens) Law, Cap. 109.

Under the current regime, prior approval from the Council of Ministers (delegated in practice to the District Administration) is required before a third-country national may acquire immovable property in Cyprus.

In general, a non-EU individual may acquire one undivided plot up to 4,000 m² for the construction of an owner‑occupied residence. Couples are granted joint permission. Alternatively, they may be permitted to acquire up to two units, which may be at different development stages. These may be two dwellings, or one dwelling and a shop up to 100 m², or one dwelling and an office up to 250 m². These limitations apply to married couples collectively.

The property must typically be intended for private use. Commercial acquisitions are assessed on a different basis and often require additional scrutiny.

In practice, approval is commonly granted provided the acquisition falls within the statutory limits, and no public-interest concerns arise.

According to the proposed changes;

• Approval requirements are likely to become stricter, with enhanced documentation and scrutiny.
• Indirect ownership structures may fall under new definitions, requiring clearer disclosure of beneficial owners.
• Timing and frequency of applications could be regulated, limiting rapid successive acquisitions.
• Sensitive zones such as urban zones, security-linked regions, and areas of public interest may see additional hurdles or limits on property ownership by non-EU nationals.

Authorities emphasised that the aim is not to discourage legitimate investment from non-EU buyers, but rather to bring greater clarity, transparency, and control to the system. The intention is to achieve a framework that supports economic interest without compromising strategic land use, housing affordability, or national objectives.

The Ministry of Interior plans to merge its draft proposals with related parliamentary bills and submit a consolidated text to the House of Representatives. Lawmakers are expected to debate and refine the measures before any final enactment.

Prospective non-EU buyers should monitor developments closely, as the proposed changes once enacted, are likely to introduce new compliance requirements and procedural steps to property transactions involving non-EU parties.

For further information and assistance, please contact us via email at info@zambartaslegal.com or via telephone at +357 22262108.