The Audit Office’s report on property purchases by foreigners has stirred strong reactions from the real estate sector, with stakeholders warning against restrictions that could harm a key pillar of the Cypriot economy.
The report, which reviewed the Nicosia District Administration, flagged loopholes in monitoring property acquisitions by non-Cypriots. It pointed to weak controls on applicants’ financial status, insufficient checks on the origin of funds, and lack of oversight on property use. It also described a “distorted picture” of total sales to foreigners and called for a new policy with clear strategic goals.
Revenue and Jobs at Stake
Polys Kourousides, President of the Cyprus Property Valuers Association, acknowledged that legislation dating back to 1959 does need updating. But he cautioned against measures that would damage a sector providing significant state revenue and over 100,000 jobs.
“Property investment by foreigners is one of the sectors that brings the most revenue to our country,” he told Politis radio 107.6. “Yes, there must be controls, but if we restrict purchases, we must be ready to find alternative sources of income.”
Kourosides added that EU citizens enjoy the same rights as Cypriots and cannot be restricted. He argued that foreign investment in rental housing could actually ease market pressures: “If a foreigner buys 15 apartments and rents them out, won’t rents go down?”
He also warned that shutting the door to foreign buyers in free Cyprus could push demand toward occupied territory.
Time to Decide What We Want
For Pavlos Loizou, CEO of Ask Wire, the debate exposes Cyprus’ contradictions.
“The crucial question is what exactly we want to achieve,” he told Politis. “If the aim is to keep land out of foreign hands, EU citizens still have the right to buy freely. If the issue is foreigners renting out property, Cypriot buyers do the same. What we need are proper control mechanisms.”
He argued that Cyprus must accept today’s demographic reality: “As a state, we have a split personality. On one hand, we cling to the 1959 law; on the other, we cannot survive without foreigners. One in four residents in Cyprus today is foreign. We need to change our approach and leave the remnants of the past behind.”
