Parliament on Thursday began discussing proposed legislation to curb the sale of real estate to non-Cypriot nationals, with some MPs even calling the matter one of national security.

Aristos Damianou, chair of the House interior committee, said their goal is to unify the various legislative proposals and take the item to the plenum for a vote before parliament dissolves for May’s legislative elections.

But he added that, given the issue’s complexity, this time-target might not be possible.

An official from the interior ministry said the government is drafting its own bill. But it would not be ready before parliament dissolves – meaning it would get tabled sometime in the summer.

MPs and government officials alike acknowledged that the current legislation governing the acquisition of property by foreign nationals is outdated and needs major tweaking.

As the law stands, it is rife with loopholes and therefore has virtually no restrictions.

For the moment, MPs requested that the government provide data on real estate in the possession of foreign nationals. The information would provide a baseline for the subsequent discussion.

Akel leader and MP Stefanos Stefanou described the matter as pertaining to national security.

“We observe the purchase of, or interest in, real estate near airports, army camps, the ceasefire line and the coastline,” he said.

A high number of land plots have already been sold to foreign nationals in areas east of Larnaca and west of Limassol.

Stefanou said his party’s proposals have another facet to them – they’re designed to gradually balance the housing market which has been in “a bubble” for years, particularly in urban centres.

This has driven prices up, and as a result many people cannot afford to buy a home.

The aim, he said, is not to prohibit the buying up of land by non-EU nationals, but rather to put a stop to the “unchecked” acquisition of fertile land by individuals and companies.

Diko’s Zacharias Koulias said they want to end the “impunity” in the south, given that authorities have no effective control on what goes on in the north.

“Even Turkish companies registered in Cyprus or other European countries are buying real estate here,” he remarked.

Greens MP Stavros Papadouris highlighted the issue of tracking down the ultimate beneficiaries.

“These individuals from non-EU countries are buying up an unrestricted number of properties, without controls.”

For its part, the Department of Lands and Surveys said it agrees with rationalising the current legislation.

But it does not want to get saddled with checking the ultimate beneficial owners of real estate. This is a complex and time-consuming undertaking – given the maze of holding companies, many of which are owned by other corporations.

A representative of the bar association advised caution, as any ill-thought changes might adversely impact foreign investment.

In a recent report the auditor-general indicated that an increasing and large part of the total sales of Cyprus properties have been to non-EU nationals –  including Lebanese, Israelis, Russians and Chinese.

It was reported that 4,321 or 27.4 per cent of the total sales of immovable property in 2024 were to non-EU buyers, with the number of title deeds transferred to such foreign nationals increasing from 873 in 2020 to 2,511 in 2024.

The auditor-general pointedly added that the percentage of non-EU nationals snapping up properties is “fictitious and underestimated and does not include Cyprus or EU companies with foreign interests”.

For example, a company controlled by non-EU beneficiaries incorporated in Cyprus or the EU is classified as a domestic entity.