Parliament on Thursday indicated its intention to pass legislation by May restricting the acquisition of real estate by foreign nationals.

The intention is to amend the relevant law by May, before the House dissolves ahead of the parliamentary elections.

So far, MPs have tabled three bills introducing restrictions on the sale of properties to foreign nationals – individuals and companies.

Interior Minister Constantinos Ioannou proposed that the three legislative proposals be merged, and then discussed together with the government’s own bill on the matter.

The MPs’ bills would prohibit the director of the land registry from approving bills of sale or transfers of immovable property if the transaction is subject to the proposed restrictions.

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officials alike acknowledge that the current legislation governing the acquisition of property by foreign nationals is outdated and needs major tweaking.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

Some MPs have even described the situation as pertaining to national security. Akel says there has been an uptick in foreign nationals buying up real estate near airports, army camps, the ceasefire line and the coastline.

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.

The report found that foreign nationals are increasingly snapping up immovable property in Cyprus, accounting for over a quarter of all property sales in 2024 – although that ratio was likely an undercount as it did 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.

On Thursday, the interior minister said the increase in property purchases by foreigners is linked to geopolitical developments in the Middle East as well as to the Russia-Ukraine conflict.

One idea mulled by the interior ministry is to introduce time limits between applications for property purchases filed by foreigners. This would prevent abuse, such as acquiring a property initially for owner occupancy and later using it for commercial/business purposes.

In addition, restrictions would be introduced in certain urban zones or areas deemed as sensitive to national security.

In parliament, a representative of the Employers and Industrialists Federation suggested a cap of two land plots for foreign nationals.