Strict Regulation of Property Sales to Foreigners in Cyprus: New Initiatives and Challenges

Cyprus, a picturesque island in the Mediterranean, has long attracted the attention of foreign investors seeking to purchase real estate. However, in recent years, there has been growing interest in stricter regulation of this process.

Cyprus Interior Minister Constantinos Ioannou reported that over the past five years, approximately 15,000 applications for home purchases have been submitted by foreign citizens from outside the European Union. This raises questions about the need for oversight and regulation of foreign real estate investment.

According to data provided by the minister, the largest number of applications came from Limassol – 5,477. This area, despite high housing prices, continues to be attractive to foreign investors. Paphos, with 4,316 applications, also holds a significant position in the market.

Larnaca, with 3,479 applications, rounded out the top three. Meanwhile, the Nicosia and Famagusta areas did not generate much interest, which was reflected in the number of applications – less than 1,000 in each.

An equally important aspect is the processing of real estate purchase applications. The minister noted that foreign buyers can wait one to two months for responses, and in some cases, the delays can be significantly longer. This is due to the need to coordinate with various government agencies, which sometimes complicates and delays the process.

The MP who raised the issue of regulation expressed concern about the effectiveness of the current permitting system. He believes stricter rules are needed to control the sale of real estate to foreign citizens. Specifically, the MP proposes establishing quotas for the number of transactions and the area of ​​land plots sold per year.

The proposed measures suggest that priority in real estate sales should be given to foreign companies operating in Cyprus and to foreign citizens who have resided on the island for a long time. This could help not only control the growth of foreign capital in the market but also maintain the stability of the local economy.

Regarding holiday properties, the MP proposes setting limits on the number of units that can be sold per year. This will prevent market saturation and maintain a balance between the interests of investors and local residents.

The introduction of stricter regulations for foreign buyers of real estate in Cyprus is a move that could have a significant impact on the market. On the one hand, this will help protect the interests of local residents and maintain economic stability.

On the other hand, it's important to consider that Cyprus remains an attractive destination for foreign investment, and excessive regulation could deter potential buyers. The balance between market control and market freedom will be key in shaping the future of real estate on this beautiful island.