Real estate agents and their assistants in Cyprus face uncertainty over their professional licences following a decision by the Cyprus Real Estate Agents Registration Council to revise the requirements for licence renewals.

In a letter dated February 3, 2025, Christos Nicolaou, president of the Cyprus Real Estate Agents Association (CREAA), raised concerns over these changes, demanding clarification from the council’s president and board members.

The letter was also sent to the House internal affairs and labour committees, as well as the interior and labour ministers.

Nicolaou criticised the council’s decision to require employers to submit social insurance records when evaluating licence renewal applications, arguing that this requirement is not stipulated in the Real Estate Agents Law and infringes on personal data rights.

He further alleged that the council’s stance on part-time employment and commission-based pay was making it harder for agents to operate legally.

However, the Cyprus Real Estate Agents Registration Council has firmly rejected claims that the changes have caused disruption.

It stated that all applications that met the necessary criteria had been approved and that any rejected cases involved individuals who failed to comply with legal requirements.

The council stressed that there is no risk to licensed real estate agents who adhere to the law and dismissed assertions of widespread industry unrest as “unfounded and misleading“.

It added that concerns raised by some agents stemmed from increased scrutiny of employment practices, particularly regarding cases of “fictitious employment arrangements.”

The council also defended its policy on commission payments, reaffirming that under the Real Estate Agents Law of 2010, only licensed real estate agents are permitted to receive commissions on property transactions.

“The law contains provisions distinct from labour regulations, and commission from a property sale can only be collected by a licensed agent,” the council said.

Before the council issued its latest statement providing clarifications on the matter, Nicolaou warned that the policies “could create significant challenges for real estate firms”, arguing that commission-sharing among employees had long been a standard industry practice.

He urged the council to reconsider its stance, warning that its approach could drive new entrants into illegal real estate activities.

Labour Ministry weighs in

Meanwhile, Andys Apostolou, director of the labour relations department at the Labour Ministry, weighed in on the issue, stating that no labour law prevents part-time employment in any profession, provided contracts adhere to existing regulations.

He also clarified that while the licensing and registration of real estate assistants fall under the Real Estate Agents Law, this law contains provisions distinct from labour legislation.

Apostolou further noted that there are no legal restrictions preventing an employee from receiving commission from their employer, provided it is included in their employment contract.

“In this case, commissions are considered part of the employee’s insurable earnings,” he explained.

The ministry also highlighted that under minimum wage decrees for 2022 and 2023, full-time employees must earn at least €900 upon hiring, increasing to €1,000 after six months.

“If an employee’s gross salary falls below these amounts, the employer must prove they are working part-time,” Apostolou added.