Cyprus prepares limits on property purchases by foreigners: MPs want to close purchases through companies

In brief

• On 22 October 2026 the House interior committee in Cyprus continued discussing amendments to the law on property purchases by foreigners.
• MPs from different parties want restrictions to cover not only individuals but also companies, funds and purchases through intermediaries.
• Consolidated draft amendments were prepared in April; the work was interrupted by the parliamentary elections in May 2026.
• The committee is waiting for a comprehensive bill from the government. The next session is in about two weeks.
• EU citizens are not affected. The rules for buyers from other countries have not changed yet.

Who proposes what

Committee chairman Aristos Damianou (AKEL) called the issue particularly serious and linked it to national security, the economy and the country's future. He noted that part of the island is under Turkish control and part is taken up by British bases, so clear criteria and restrictions are needed. In his view, regulating only individuals is not enough: companies, funds, concealed buyers, undisclosed contracts and purchases through intermediaries must be covered too.

DISY MP Nikoletta Konstantinou agreed that restrictions on individuals are easy to get around through corporate structures, so the rules must cover both natural and legal persons. But she warned against unjustified or disproportionate restrictions: the framework must reflect EU law, the property market and investment policy. Konstantinou criticised the government for not yet presenting a comprehensive proposal. Plot sizes of 1,000, 2,000 and 4,000 square metres were mentioned, but as examples, not as ready rules.

DIKO MP Panikos Leonidou said land purchases by third-country nationals had reached uncontrolled proportions and urged Interior Minister Constantinos Ioannou to table a bill immediately.

What this means for you. Tightening has support from parties across the political spectrum. This is not a one-off initiative by a single MP, and I would not count on the issue fading away.

A permit for a non-EU buyer: how it works now

Property purchases by foreigners in Cyprus are governed by the Acquisition of Immovable Property (Aliens) Law, Cap. 109. EU citizens buy on the same terms as Cypriots. A non-EU national needs a permit, issued on behalf of the Council of Ministers by the District Officer in the district where the property is located. Usually the permit covers a home for own use or a plot to build one's own house; in practice a limit of about 4,000 square metres is cited for the plot.

The weak spot has long been known. A buyer can sign the contract and lodge it with the Land Registry before the permit is granted, and register ownership in their own name only afterwards. In summer 2025 it was widely discussed in Cyprus that the permit is not treated as a precondition for lodging the contract, so the check in practice moves to a late stage. And a purchase through a company, even one with foreign owners, follows a different path altogether. These are the gaps MPs want to close.

What this means for you. If you are a non-EU national, today you buy under the current rules: a permit is required, and it is realistic to obtain. But buying through a company to avoid the permit is becoming risky: that is exactly what is due to be regulated first.

Residence for a EUR 300,000 home purchase is not changing yet

The parliamentary discussion concerns the rules on purchases, not the permanent residence by investment programme. The committee has not changed the residence conditions, including a new home from EUR 300,000 plus VAT. But the two topics are linked: most residence buyers are non-EU nationals, and any new purchase criteria will affect them directly.

The market is still growing. In early October we wrote that Cyprus is selling homes at a record pace. If the law is adopted, land buyers and those buying several properties will feel it first. Buying one flat to live in or for residence will most likely remain possible, but it will be checked more strictly.

What this means for you. If you are buying in Cyprus for permanent residence, put the deal in your own name as an individual and obtain the permit under the law, not through workarounds. That keeps you safe under any version of the amendments. Programme terms are on the page on Cyprus permanent residence.

14,969 deals in 9 months: the market the restrictions are coming to

MPs are discussing the rules against an active market. According to Land Registry data cited by the Cypriot press, 14,969 sale contracts were registered in Cyprus in the first nine months of 2026, 14% more than a year earlier. Foreign buyers accounted for about 42% of deals. We wrote more about the sales record in the article on the record Cyprus market.

A foreign buyer in Cyprus can be an EU citizen or a buyer from a third country. For the former, the rules do not change. For the latter, the growth in deals has become the MPs' argument: land purchases by third-country nationals, as one of them put it, have reached uncontrolled proportions. Official statistics on companies with foreign owners are not publicly available, which is one reason MPs want to see the ultimate buyer.

What this means for you. If the rules are tightened, the market will not stop: EU citizens and Cypriots make up more than half of the deals. But buyers from outside the EU should expect longer and more detailed checks.

Why has the issue come up now?

There are several reasons. The first is security. The committee chairman explicitly linked the issue to the fact that part of the island is under Turkish control and part is taken up by British bases. Buying land near sensitive sites through a chain of companies is what MPs call the main threat.

The second is unfinished work. Consolidated draft amendments were prepared back in April 2026, but parliamentary elections were held in May and the work stopped. The new parliament has returned to the issue, while the government has not yet tabled its own text. Hence MPs' calls on the Interior Minister.

The third is a general move towards tighter rules. In September 2026, according to press reports, the Cypriot authorities announced plans to tighten the conditions of the permanent residence by investment programme, although no amendments have been adopted yet. Property purchases and investment residence are closely linked, so changes in one will almost certainly affect the other.

What this means for you. The issue is neither new nor accidental. It returns every year, and now it has support from several parties. I would plan a purchase on the assumption of stricter rules, not of the current ones staying in place.

Three likely versions of the amendments

There is no bill text, so what follows is not fact but an assessment based on what was said at the session. MPs from different parties spoke about three directions.

1. Restrictions will be extended to companies. If a company's ultimate owner is a non-EU national, buying through it may require the same permit as buying as an individual. The committee chairman and the DISY MP both said as much.
2. Plot size limits will appear. Figures of 1,000, 2,000 and 4,000 square metres were mentioned as examples. There are no ready rules, but the discussion suggests that limits on land are more likely than limits on flats.
3. Buyer disclosure will be tightened. MPs singled out hidden purchases through intermediaries and undisclosed contracts. A logical step is a requirement to disclose the ultimate buyer when the deal is registered.

All three directions would hit land buyers and those building a property portfolio hardest. Judging by MPs' positions, nobody has proposed banning the purchase of one flat to live in or for residence. The DISY MP specifically warned against disproportionate restrictions that would conflict with EU law and investment policy.

What this means for you. If you are buying one flat for yourself or for residence, the risk is low. If you are buying land or several properties through a company, expect more questions and allow more time.

Checking a Cyprus deal before signing

New rules are not a buyer's only risk in Cyprus. Many problems come from the property itself: no separate title for the flat, a property mortgaged to the developer's bank, a contract not lodged with the Land Registry. These are checked before signing, and the law on purchases by foreigners changes nothing here.

The District Officer's permit is requested in the district where the property is located. Usually the application includes the sale contract, a copy of the passport and proof of the source of the purchase funds. In practice the timing varies from a few weeks to several months. Without the permit the buyer can sign the contract but cannot register ownership in their own name. If the amendments are adopted, this stage is the one most likely to become stricter and longer, so it is better to apply right after signing.

A note on lodging the contract. In Cyprus the sale contract is filed with the Land Registry to protect the buyer: after that the property cannot be sold or mortgaged to someone else without the buyer knowing. For a non-EU buyer this does not replace the District Officer's permit, but it protects the money while the permit and the title are in progress.

What this means for you. Checking the property and choosing the right purchase structure protect you under any version of the amendments. This is a lawyer's job before signing, not after.

What a buyer should do now

The purchase process step by step is described in the article on buying property in Cyprus.

How this article was prepared

The article is based on Cypriot press reports on the session of the House of Representatives interior committee on 22 October 2026, with the positions of the committee chairman and MPs from three parties, and on the current Cypriot Acquisition of Immovable Property (Aliens) Law, Cap. 109. Information on the practice of lodging contracts with the Land Registry comes from the public discussion in 2025; check the official procedure with a lawyer. There is no bill text yet. This article does not replace advice on your own transaction.