FOREIGNERS AND FOREIGN COMPANIES - RUNNING TO ACQUIRE REAL ESTATE BEFORE LEGISLATION WITH RESTRICTIONS IS PASSED - Filenews 27/2 - Vassos Vassiliou
Third-country nationals as well as foreign companies are reportedly intensifying their efforts to acquire real estate in Cyprus, in view of the imminent adoption of legislation that sets restrictions, especially when they are located near critical infrastructure such as military camps, ports, airports and generally critical infrastructure.
The promoted legislation, which is in the final stage of its preparation, includes provisions for law proposals by AKEL, MPs of other parties and positions of the Ministry of the Interior.
As it has been clarified before the Parliamentary Committee in which the relevant proposals were discussed, deeds of purchase and sale which have been completed or have already been submitted to the Land Registry Department, are not affected by the promoted legislation which will not have retroactive effect.
As Filenews had recently written, a large part of the coastal front of Larnaca and Limassol has passed into the hands of third-country nationals, who camouflagedly control land development companies, while at the same time illegal real estate brokerage is rampant with real estate sales being agreed under the table abroad.
The chairman of the Parliamentary Committee on Interior, Mr. Aristos Damianou, stated that on the initiative of AKEL, a comprehensive proposal for a law was prepared in order to regulate the purchase of real estate by third-country nationals and companies of foreign interests.
It is a given, he said, that a large part of our country has been sold and has ended up in foreign hands, which for semi-occupied Cyprus is dangerous. At the same time, he continued, real estate prices have taken off through a bubble as a result of the purchase of large areas, especially in urban centers.
Mr. Damianou expressed satisfaction, because, as he mentioned, there is acceptance of AKEL's proposals even by the Ministry of the Interior, which leads to a consensus around the party's initiative.
Mr. Damianou also stated the following: "At the same time, similar proposals have been prepared by colleagues from other parties and I took the initiative to unify all the texts, in consultation with the Ministry of the Interior, and meetings have already been held, so that the legislation can also be approved by the government, so that there are no issues of referral, etc."
He also said that the points of convergence were examined while some concerns were raised, expressing the hope that a conclusion will emerge in the next 15 days, so that the texts under processing can be approved into legislation before the dissolution of parliament in early April.
As he explained in response to a relevant question, the promoted regulations essentially set criteria on the basis of which the phenomenon of uncontrolled real estate purchases without restrictions on their area and sales areas will end.
He also observed that the criteria that existed in the existing legislation overflowed, with the result that citizens or companies of third countries were bought from hotels to beaches.
He further stated that based on the promoted regulations, third-country foreigners will be able to buy properties with a defined maximum area and not uncontrollably as is the case today. Also, the acquisition of land in agricultural and rural zones will be prohibited, while the acquisition of real estate near critical infrastructure such as military camps, ports, airports, beaches, etc. will also be prohibited.
He said, the acquisition of houses and shops will be allowed.
He also explained that the Ministry of the Interior sets as a condition "that the buyer keeps the property he buys for at least five years, something with which there is no disagreement.
"This regulation seeks to prevent the repetition of the phenomenon of straw men buying large areas simply for exploitation purposes, which prevailed during the golden passport period," he added.
The Chairman of the Fiscal Council, Mr. Michalis Persianis, indicated that we must realize that maximizing foreign capital inflows should not be the only goal.
Foreign capital is a blessing for the economy, but when there is no goal and strategy, we are led to inequalities and bleeding of certain industries, he said.
