A package of legislative proposals amending the law governing the acquisition of immovable property by third-country nationals in Cyprus was discussed on Thursday at the House Interior Affairs Committee.
Speaking after the meeting, DISY MP Nikos Georgiou said the issue is at the centre of public debate, noting that for the past year the Democratic Rally has consistently raised the need to modernise the relevant legislative framework, approaching the matter seriously and free from populism.
Safeguarding public interest
He recalled that, following parliamentary questions submitted by DISY, the Minister of Interior publicly acknowledged the need to amend and modernise the existing legislation, which is now considered outdated and inadequate. Georgiou stressed that the party’s concerns do not stem from opposition to property development.
“They arise from the need to maintain balance, safeguard the public interest and protect the interests of our country. We need quality investments and must work collectively to attract them, but we must also be cautious when it comes to land ownership - particularly when changes create a new reality and potential risks for the country in the future. This issue must be addressed with seriousness and responsibility,” he added.
AKEL General Secretary Stefanos Stefanou said that the House Interior Affairs Committee had opened discussions on two legislative proposals submitted by AKEL, aimed at introducing controls, limits and objective, measurable criteria to address what is widely acknowledged as a major problem: the uncontrolled sale of land and property to third-country nationals.
National security concerns
Stefanou welcomed the fact that there was unanimous recognition within the Committee of both the existence of the problem and the need to address it. He acknowledged that the issue is complex and multi-layered, involving legal and other challenges, but said that there appears to be a willingness among political parties, ministries, services and stakeholders to engage in constructive cooperation in order to reach constitutionally sound and effective solutions.
He outlined two key dimensions of the issue. The first relates to national security, particularly the purchase of land near critical infrastructure, the ceasefire line, and other sensitive areas where the Republic of Cyprus must exercise effective control, especially given the ongoing occupation and regional instability. The second concerns rising property prices and, consequently, access to housing.
Stefanou said that uncontrolled property sales have contributed to a sharp rise in prices, making it increasingly difficult for a large segment of the population to acquire land or housing. He argued that controlling the phenomenon would help stabilise prices and improve access to home ownership. While acknowledging that the issue is not simple, he expressed satisfaction that AKEL’s proposals are viewed as well-considered and capable of forming a solid basis for dialogue that should not be allowed to drag on.
Could Cyprus become another Palestine?
He also noted that other parties and MPs have submitted proposals addressing various aspects of the issue. AKEL’s intention, he said, is to work collaboratively to reach a result as soon as possible that safeguards both national and social interests. Following Thursday’s discussion, he said he was optimistic about achieving this goal.
Asked whether Cyprus could face a situation similar to that of Palestine, Stefanou said Cyprus has limited territory, is small in size, and remains partially occupied, limiting effective control over the occupied areas. He pointed to longstanding large-scale sales of Greek Cypriot and other properties in the occupied areas, adding that nothing can be ruled out in the long term.
“This is why we must do what many other countries in Europe and elsewhere already do - including states that are larger, more populous and face fewer risks than we do,” he said. He stressed that AKEL’s proposals do not impose a ban but introduce limits, controls and clear criteria. Addressing concerns that such legislation could harm the economy or investment policy, he said these factors had been taken into account, allowing continued investment while imposing effective safeguards.
Legislative gaps
DIKO MP Panikos Leonidou said that, reflecting widespread public concern over property purchases by third-country nationals, the majority of parties in the House had submitted legislative proposals aimed at curbing what he described as an uncontrolled situation. He pointed to significant legislative gaps that allow potentially dangerous transactions contrary to the national and public interest.
He said the Committee agreed on the need for coordination, consensus and shared responsibility, given the seriousness of the issue and its implications for both national interest and the economy. The aim, he said, is to review all proposals responsibly within a short timeframe and, if possible, establish a new framework to be submitted to the Plenary.
DIKO MP Zacharias Koulias said the discussion marked the start of deliberations on property transactions in Cyprus. He noted that until 2010, purchases by non-Cypriots were more limited, but subsequent liberalisation led to a largely uncontrolled system. One DIKO proposal, he said, seeks to restore the previous regime, requiring that companies active in real estate have at least 51% Cypriot ownership, with EU nationals exempted. He stressed the need for strict measures regarding third-country nationals, given Cyprus’s semi-occupied status.
Turkish interest
Koulias also raised concerns over the registration of Turkish-interest companies and development on occupied Greek Cypriot land, as well as the lack of protection for agricultural and forest land. He expressed hope that all proposals would be considered together, leading to a robust institutional framework to protect ancestral land.
Green Party leader and MP Stavros Papadouris described the issue as difficult but widely acknowledged across parties. He said the uncontrolled situation resulted from legislative changes and enforcement gaps, particularly regarding oversight of third-country nationals and the identification of beneficial owners, noting that many acquisitions are made through corporate structures.
Urgency at hand
He warned that a significant proportion of Cypriot property has already passed into the hands of third-country nationals, either directly or indirectly. While such purchases are common internationally, he said Cyprus must exercise heightened caution due to its size and political circumstances. He also referred to illegal estate agency practices and speculative sales of properties under construction that escape oversight and taxation for years.
Papadouris said there was broad preliminary agreement within the Committee that the issue is urgent, with a shared goal of concluding the matter before the end of the current parliamentary term. He expressed hope that, with the involvement of the Interior Ministry and the Legal Service, a common legislative text could be finalised and submitted to the Plenary within the next two months.