Foreign buyers out of the EU were 27% of all real estate sales in Cyprus, according to data presented by the Audit Office (EY), during examining the special report on the inspection of immovable property by foreigners before the Parliamentary Committee. Paphos was first in these sales in 2024, while Larnaca was in second place.
Positioned to the Commission, the Audit Service's representative referred to the gaps and shortcomings identified and underlined the impact on access to the residence. A spokesman for the Ministry of the Interior has confirmed that there is an ongoing process of preparing a bill to treat weaknesses. Their concerns about the impact on national security and the real estate market was expressed by MPs with the Commission President Zacharias Koulia reporting that the Commission will come back to examine the matter in November and calling for intermediate measures until the bill is ready.
Eu emphasized that gaps were found in the law on the sale of real estate to foreigners, as well as a lack of mechanism for control of the real estate use after its sale, while exporting the bell, inviting the competent authorities to take measures due to increased interest in buying property.
According to the EU report, real estate sales to foreigners in 2024 amount to 4321 out of a total of 15,797, ie 27%, while only 61% of sales were for Cypriot buyers. The report, however, emphasizes that 27% "is actually much higher, as this percentage does not include transfers/sales to Cypriot companies with aliens shareholders". The corresponding rate for the first seven months of 2025 reached 26%, so it is expected to exceed last year.
This issue was particularly concerned with the members of the Commission, who asked the Registrar of Companies, the Land Registry and other stakeholders, to cooperate to produce the necessary information that will show the percentage of foreign interest companies acquiring immovable property in Cyprus. MPs expressed their disappointment on the lack of mechanisms of control and mapping of real estate selling tendencies in Cyprus and raised even national security issues.
Paphos had 1,373 (44.19%) in 2024 sales in 2024, with the largest volume of real estate transfers to foreigners in the five years 2020-2024, with the number of transfers in the years 2023 and 2024 overlapping. Larnaca is second in sales to foreigners outside the EU in 2024 with 1,136 contracts (33.85%), while around 26% were in Famagusta and Limassol and only 7.68% in Nicosia.
Out-of-EU foreigners who have acquired real estate in Cyprus in the last five years (2020-2024) come mainly from Lebanon (16%), China (16%), Russia (14%), Israel (10%), Syria (6%), Egypt (5%), UK (4%), UK (4%), UK (4%), UK (4%).
In addition, according to EY, the rate of acquisition of real estate by foreigners outside the EU is also increasing due to the possibility of concluding conventions. It is noted that the total number of assignments, including Cypriots, Europeans and nationals of third countries, which have been deposited in the Land Registry and Surveying and are still in place, amounts to 9,746.
Gaps and weaknesses in the institutional framework was identified by EY
Maria Pavlou, a member of the Audit Service's management team, presenting the report before the Commission, noted that weaknesses were found in examining applications for acquisition of real estate by foreigners. He referred to the absence of documented explanations on the financial situation of the applicants. He also noted that the legislation is not foreseen to check the source of funds for markets. He also noted that there is no check on the use of real estate after purchase.
She said that the Ministry of the Interior had announced the intention of upgrading the computer system used by provincial administrations since 1999. To date, 25 years later, no substantial improvements have been made and significant weaknesses and shortcomings remain, as Ev.
The practice that is followed and has been shaped through the circulars of the Ministry of the Interior, according to EY, essentially expands the concept of ownership and professional housing, allowing the acquisition of more real estate units without any regulations being amended, which creates doubts.
Mrs Pavlou emphasized the impact on access to the home, due to the high cost of costs for both the market and for renting real estate throughout Cyprus.
The EU report also notes that there were shortages in the following request to examine requests, as it was formed through the relevant circulars of the Ministry of the Interior, thus not ensuring the objective, fair and uniform examination of all requests by foreigners.
It also recommends the introduction of monitoring mechanisms, the development of a modern computerized system of submission and examination of applications, as well as strengthening and training of provincial administrations for the effective management of applications.
Antonis Economidis, Head of the Department of Local Government of the Ministry of the Interior, confirmed that there is an ongoing procedure for preparing a bill to treat the weaknesses that have been identified. Representing the Minister of the Interior at the meeting, he assured the existence of political will in this direction, and agreed with Members pointed out that they should consider the economic, social and other impact of the mass market for foreigners.
DIKO's committee chairman and MP, Zacharias Koulias, stressed at the meeting the need for these proceedings to proceed immediately, and said the committee would return to examine the matter in November. He also requested that the possibility of taking intermediate measures until the bill was prepared.
MPs concerns about financial impacts and national security issues
Mr Koulias noted that the situation was left to reach the extremes, and reminded that the Commission had also been concerned with the issue of registration in Cyprus in Turkish interests. AKEL MP Christos Christofides recalled that following the debate on registration of Turkish interests, the preparation of a bill that will give the taxpayers' right to register Turkish interest companies for national security.
In his statements following the committee's meeting, Mr Koulias emphasized that "Cyprus has become a vineyard", saying that the restrictions that existed in essence have virtually disappeared through the circulars issued by the interior ministry, resulting in "buying" as they want. "
However, at the Commission meeting, AKEL MPs, Christos Christofides and Giorgos Loukaidis, referred to the consequences of the phenomenon, noting that, in addition to increasing real estate prices, there are also national security issues or even control of the country's political life. services.
DISY MP Onoufrios Kalla said at the meeting that it is important that the process of modernizing the legislation has begun. He noted that direct foreign investment in critical sectors are a serious issue, even if it is not for land market, but the market.
In statements after the meeting, AKEL MP Irene Charalambidou said that the issue concerning the purchase of real estate by foreigners may have worse consequences than the passport case and expressed its doubt as to whether the parliament would catch up before 20.
Referring to the national security issues, which were also raised at the Commission meeting, he said that it was not possible for the office of the Companies and the Land Registry not to have an accurate picture of the percentage of Cypriot land sold in foreign interests. He also referred to the large increase in real estate prices and the acute housing problem, noting that the Limassol coasts no longer belong to Cypriots.
"These are issues that had to be corrected for many years," he said, adding that "the data submitted by the Audit Service are extremely worrying." He also called on the relevant ministers and the Attorney General, as a legal adviser to the President of the Republic, to propose and make changes.
Independent MP, Alexandra Atalidou, said in statements following the Commission meeting that the legislative framework governing the purchase of real estate by foreigners outside the EU is "perforated" and that this has multilevel impacts, economic, social, cultural and ecological.
He emphasized that, among other things, to what extent, national security or even transnational relations is affected. He also said that it should be ensured that investors keep their tax liabilities and do not enjoy more favorable treatment. He added that the cultural impact should also be considered, noting that it is important for a society to assimilate those who come to reside in one place. Finally, he set the environmental dimension, noting that "the coasts of Cyprus are being north of growth".
Referring to a question he had sent about the purchase of real estate in the area of Makarios Avenue in Nicosia, he said that he had received information that there was mass purchases of real estate from companies, whose final owner is not possible to find out and therefore requested to check.
