Government officials and MPs on Thursday revisited the matter of restricting property and land purchases by non-EU nationals, with one lawmaker saying that foreign nationals account for one-half of such transactions.

In parliament, Interior Minister Constantinos Ioannou said the government was ready to incorporate a number of proposals into an updated law.

To date, four separate bills have been drafted by the Disy, Akel and Diko parties.

“Our aim is to more effectively regulate the acquisition of land by foreign nationals (individuals), boost transparency and, most of all, ensure an effective and substantive checking mechanism,” Ioannou said.

A working draft bill includes “several tools” to achieve this, he added.

This includes prohibitions within designated development boundaries – for example agricultural tracts – as well as prohibitions for land adjacent to the ceasefire line or critical infrastructures.

Other proposed restrictions relate to the size of the land plot, as well as the surface area of a residence.

On the latter – concerning the size of residences – the minister said the details are being hammered out.

Speaking to media, Akel MP Aristos Damianou called for objective and quantifiable criteria regarding the purchase of land by “large, foreign private interests”.

He added: “We live in a country half of which is occupied. Another part of Cyprus is in the hands of the British bases. And today, official statistics show that at least one out of two sales contracts concern purchases by foreign nationals and, in many cases, these concern large tracts of land.”

Restrictions on purchases by foreign nationals were therefore necessary when it comes to land near harbours, airports and the ceasefire line.

Damianou noted that on Thursday they discussed the aspect relating to property purchases by individuals. Later, in October, the House interior committee will look at the other aspect – purchases by corporations.

“This issue…is primarily one of national security,” the MP asserted. “It is a patriotic matter, but also a social matter, because rising real estate prices are not unrelated to the unchecked purchase of large plots of lands or very expensive plots by foreigners.”

Disy MP Nicoletta Constantinou agreed with the need for better regulation, but warned against “blanket prohibitions” that could adversely impact investments.

In a prior 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.