CONSULTATION URGED ON NON-EU NATIONALS BUYING CYPRUS PROPERTY - Cyprus Property News 7/4 by Nigel Howarth
The Cyprus Chamber of Commerce and Industry (CCCI) has urged authorities to engage in meaningful consultation with stakeholders before moving forward with property legislation that would significantly reshape the country’s real estate landscape.
The proposed law, which regulates the acquisition of immovable property by non-EU nationals, is raising concerns within the business and investment community about potential unintended consequences for the property market.
The Chamber warned that introducing regulatory changes without comprehensive dialogue could affect Cyprus’ competitiveness as an international investment destination. According to the CCCI, policy decisions impacting such a crucial sector must be carefully evaluated to ensure they do not disrupt economic growth or weaken investor confidence.
Proposed limits on non-EU property buyers
The bill, submitted by AKEL and presented before the House plenary on 2 April, introduces stricter conditions on property ownership for non-EU nationals. Among its key provisions are a prohibition on foreign buyers acquiring agricultural or forest land, as well as a restriction limiting foreign nationals to the purchase of just one residential property.
The legislation also aims to close existing loopholes that have enabled multiple acquisitions through corporate structures, a practice that has drawn criticism amid concerns about affordability pressures in certain segments of the housing market.
Rising property prices drive policy debate
According to data referenced by House Interior Committee chairman Aristos Damianou, approximately half of land transactions in Cyprus involve third-country nationals. The increase in foreign demand, particularly in urban areas, has coincided with significant property price growth, intensifying debate around market accessibility for local buyers.
While the business community broadly supports transparency and well-regulated investment activity, concerns remain that overly restrictive measures could deter legitimate investors, especially from key markets in the Middle East and Asia.
Impact on investment climate and international image
The CCCI emphasised that any legislative reform affecting property acquisition has wider implications for investment flows, economic competitiveness and Cyprus’ reputation as a stable international business hub. In a statement, the Chamber highlighted the importance of evidence-based policymaking, particularly given the current global economic uncertainty.
Stakeholder engagement, it said, is not merely procedural but essential for achieving balanced regulation that safeguards both market stability and long-term economic development.
Call for structured dialogue before parliamentary vote
The Chamber has called for the draft framework to be submitted to competent bodies for detailed examination and sufficient consultation time before any parliamentary vote takes place. It has also expressed readiness to meet immediately with the relevant committee to present recommendations on behalf of the business community.
As Cyprus continues to navigate housing affordability challenges while maintaining its attractiveness to international investors, the outcome of the proposed legislation is expected to shape the trajectory of the real estate market in the months ahead.
