Cyprus is preparing changes to its land acquisition framework after parties raised concerns over increased property purchases by third-country nationals, with the government aiming to close legal gaps while avoiding harm to investment activity.

The Ministry of Interior has begun drafting a revised framework, Interior Minister Constantinos Ioannou told the House interior committee, as authorities attempt to modernise legislation governing foreign property ownership.

Among the issues under review is a clearer definition of the concept of acquisition and limits on property size. The minister said an effort would be made to “more clearly define the term for acquiring real estate and the maximum area of real estate that can be acquired”.

He added that authorities are considering “the introduction of a time limit between applications that an applicant can submit” in order to prevent abuse of the process and its conversion from residential use into business activity.

At the same time, restrictions in specific urban zones and areas linked to security or public-interest concerns are also under examination.

Ioannou submitted a proposal to combine three parliamentary bills into a single legislative text to be examined together with the ministry’s own amendments.

The proposals, tabled by Akel secretary-general Stefanos Stefanos and MPs including Zacharias Koulias, Panikos Leonidou, Pavlos Mylonas, Chrysanthos Savvides, Christos Orphanides, Kyriakos Hatzigiannis, Alekos Tryfonidis and Nikos Georgiou, seek stricter controls over transfers where existing restrictions apply.

They also aim to abolish provisions allowing indirect acquisition without Council of Ministers permission, introduce effective control criteria and prevent the use of Cypriot companies as intermediaries for foreign buyers, while protecting agriculture and rural communities and safeguarding the public interest.

Ioannou said the objective is to produce a unified amendment that will provide “the best possible shielding of the framework”.

Interior committee chairman Aristos Damianou said there is “readiness to find convergences so the bill can reach the plenary before parliament’s term ends in April, ideally with broad acceptance.”

The minister noted that purchases have risen sharply due to geopolitical developments in the region and the Russia-Ukraine war.

Although the law sets clear limits for natural persons, he acknowledged it “seems to present an inability to regulate the issue in relation to legal entities”, alongside transparency and interpretation gaps.

The finance ministry supported the direction of the reform, stressing the law’s purpose is to protect strategic sectors and infrastructure for national security and public order, not to impose a general ban on property ownership.

Meanwhile, the employers and industrialists federation (Oev) proposed allowing foreigners to acquire up to two plots or residential units with a maximum land area of 4,000 square metres and requested coastal areas remain exempt from possible prohibitions.

Georgiou said restrictions are necessary but must be applied carefully.

“Our aim is not to harm foreign investments,” he said, adding that land ownership “in a semi-occupied homeland, with an island character, and the political problems we face, requires some more safeguards”.

Authorities say the broader approach must remain holistic because of links to other legislation and potential economic impact, attempting to balance market attractiveness with social cohesion and national-interest protections.

Under current rules, foreign nationals from outside the European Union, including foreign-controlled companies, must first obtain a permit from the relevant district administration before acquiring immovable property in Cyprus.

The application is submitted using form COMM 145 together with supporting documentation for the property concerned. No fee is charged and the examination period usually ranges between two and three weeks.

Under the existing framework, a foreign buyer or couple may obtain permission for either a plot of land of up to 4,000 square metres intended for owner-occupation, or up to two units located in different developments.

These units may consist of two residential properties, or a residence combined with a shop of up to 100 square metres, or a residence combined with an office of up to 250 square metres. In the case of a couple, the limit applies jointly.

Supporting documents include title deed copies, zoning and building permits where required, the stamped contract of sale, architectural plans, proof of financial standing and passport copies.

Where companies are involved, registration certificates, shareholder details and corporate activity information must also be submitted.