Filenews 13 January 2026 - by Vassos Vassiliou
The discussion of two bills by the general secretary of AKEL, Stefanos Stefanou, begins on Thursday before the parliamentary committee on the interior, which seek to exercise control over the acquisition of real estate by foreigners from third countries, in order to prevent the uncontrolled purchase of real estate, which in some cases happens camouflaged through companies.
The provision is also considered important, according to which the acquisition of forest or agricultural land and real estate adjacent to the ceasefire line is prohibited.
The proposals provide for the purchase of either an apartment or a house and that's it. At the same time, the acquisition of real estate by foreigners who hide behind companies is also prevented.
Stefanou's proposals clarify that "a Cypriot and/or European company controlled by foreigners is not exempt from the definition of the term 'foreigner'".
In addition, provisions of the current legislation are abolished in order to fill the gaps that allow the acquisition of a large area of land by foreigners.
According to the proposals of the general secretary of AKEL, a permit from the Council of Ministers will not be required to acquire either an apartment or a house with an area of up to 200 square meters or an office with an area of up to three hundred (300) square meters.
The same applies to companies controlled by foreigners.
In the explanatory memorandum accompanying the law proposals, it is stated that the purpose is to amend the Law on the Transfer and Mortgage of Real Estate, so that the director of the Department of Lands and Surveys cannot accept the transfer of immovable property or the registration of a contract of sale or exchange or assignment of immovable property, in the event that the restrictions provided for in the provisions of the Law on the Acquisition of Real Estate apply. (foreigners) of the Law.
The same explanatory memorandum also states that the proposed legislative regulations are considered necessary to strengthen the control of legality in the acquisition of real estate by foreigners. At the same time, they aim to prevent the indirect acquisition of real estate by foreigners through companies or the conclusion of concession agreements, as well as to ensure transparency as to the identity of the beneficial owners of legal entities that acquire immovable property in the Republic.
The provisions of the draft law provide, among other things, for the following:
-Broaden the definition of the term "foreign-controlled company" to also include any organization in which the beneficial owner under its provisions on the Prevention and Combating of Money Laundering Law is a foreigner.
-Abolition of certain provisions of the current legislation that present gaps and interpretative ambiguities, namely, among others, those concerning the acquisition of a large area of land by foreigners.
-Introduction of a provision according to which a permit from the Council of Ministers will not be required in case the acquisition of real estate by a foreign natural person concerns the acquisition of an apartment or a residence with an area of up to two hundred (200) square meters, a shop with an area of up to two hundred (200) square meters or an office with an area of up to three hundred (300) square meters.
-Introduction of a provision so that a legal entity controlled by foreigners can acquire, without the permission of the Council of Ministers, a store with an area of up to two hundred (200) square meters or an office with an area of up to three hundred (300) square meters.
-Prohibition of the acquisition by foreigners of forest or agricultural land and immovable property adjacent to the ceasefire line or area and/or critical infrastructure.
