暗网禁区

The Cypriot government has pledged to repeal and replace a loophole-ridden law that currently governs property purchases by non-EU citizens.

Interior Minister Constantinos Ioannou made the announcement on Thursday, following a formal inquiry submitted by Nikos Georgiou, a DISY MP representing Famagusta.

At the heart of the issue lies the Acquisition of Immovable Property (Aliens) Law, Chapter 109. This outdated piece of legislation governs how non-Cypriots can acquire property on the island. In its current form, the legislation requires non-EU nationals to obtain Council of Ministers approval before owning immovable property.

Under current Cypriot law, a non-EU citizen is permitted to acquire residential or commercial properties, and may purchase land up to 4,000 square metres, provided the intention is to build a private home. However, the law is being bypassed systematically through the misuse of Cypriot companies. The result is massive property transfers without the state truly knowing what鈥檚 going on.

There are two main ways this happens:

A Cypriot owns a company that holds property. Rather than selling the property, they sell the company to a non-EU citizen. Legally, it appears the property hasn鈥檛 changed hands. But in reality, control has shifted. The new owner demolishes what鈥檚 there and builds a block of apartments.

A non-EU citizen pays a Cypriot to establish a company in the Cypriot鈥檚 name. That company acquires land. Later, through a simple transfer of shares filed with the Companies Registrar, the company 鈥� and by extension the land 鈥� is handed over to the foreign investor. On the surface, it鈥檚 legal. In substance, it鈥檚 an abuse of the system.

These tactics explain the rise of property developers from non-EU countries operating all over Cyprus. Behind the front of Cypriot-registered companies, they buy and sell land, renovate, evict, resell, or rent to their compatriots 鈥� often at exorbitant prices. The local population is priced out, and the state just sits back and watches it happen.

Rising foreign ownership and unrecorded transactions

MP Nikos Georgiou highlighted a sharp increase in property acquisitions by non-EU citizens, citing land registry data. He also noted that many transactions are not officially recorded, often taking place through 鈥渁ssignment/transfer contracts鈥�. These allow ownership rights to be transferred from one party to another without requiring the consent of the original seller, thereby enabling foreigners to circumvent official restrictions.

This loophole enables these 鈥榮hadow鈥� transactions and also deprives both the state and local municipalities of substantial property tax revenues.

Georgiou warned that if the government does not move swiftly to modernise the law, MPs will move forward with legislation they have already drafted. A bill submitted to parliament would cap non-EU acquisitions to one apartment or house not exceeding 200 square metres.

Foreign ownership by the numbers

According to the Department of Lands and Surveys, non-EU citizens now own nearly 10% of immovable property in the Paphos district, and 7% in Larnaca and Famagusta. The most active buyers include citizens of Israel, the United Kingdom, Russia, Greece, and Lebanon.

The government鈥檚 upcoming revision of the property law aims to introduce clarity, transparency, and fairness, ensuring foreign investment does not come at the cost of regulatory oversight or lost revenue.

Source ...Cyprus Property News