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Concerning Trends: Foreign Acquisition of Cyprus Real Estate Exceeds Official Estimates

by THEFUTURE.TEAM

September 25, 2025

Overview Of Official Findings

The recent report by the Auditor General underscores an alarming shift in the Cyprus real estate market. According to audited data, 61% of properties were acquired by Cypriot residents last year, while transactions involving citizens of the European Union and third-country nationals accounted for the remainder. However, a deeper examination suggests that the real extent of foreign participation is underreported.

Discrepancies In The Data

The Auditor General’s report reveals that official figures indicate a 27% share of transactions by non-EU buyers for 2024, with an additional 12% involving EU citizens (excluding Cypriots). In reality, many deals with foreign influence are obscured by a classification loophole: transfers involving Cypriot companies with foreign shareholders are recorded as domestic transactions. Thus, the real extent of foreign activity may be significantly higher than reported.

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Exploiting Regulatory Gaps

Compounding this issue is the possibility for non-Cypriots to acquire real estate indirectly through assignment contracts. These contracts allow the transfer of rights and obligations from a sales agreement to a non-Cypriot, bypassing current ownership restrictions. According to statements from the Minister of the Interior, the existing Land Information System of the Department of Lands does not adequately distinguish such cases by nationality, further complicating regulatory oversight.

Regional Variations And Market Dynamics

The report provides a detailed regional breakdown for 2024. In Nicosia, property transfers were largely domestic (79%), compared to only 12% attributable to foreign buyers. However, in Paphos the situation is different; nearly 24% of transfer transactions involve non-Cypriots, a figure that rises to almost 39% when EU citizens (other than Cypriots) are included. Other regions such as Larnaca, Limassol, and Ammochostos have foreign purchase rates ranging from 10% to 14%, reflecting a diverse market dynamic across the island.

Analysis And Proposed Regulatory Reforms

The Auditor General calls for immediate legislative action to curb what he describes as an “uncontrolled entry” of foreign capital into the real estate market. Suggested measures include imposing limits on the number of properties that may be purchased per foreign buyer, establishing income and net worth criteria, requiring detailed documentation of capital origins, and enforcing stricter controls on the use of properties for tourism purposes. Additionally, there is a proposal to introduce an application fee designed to defray administrative costs and discourage misuse of the system.

Implications For The Cyprus Market

These insights reveal a market influenced by both overt and concealed foreign transactions, raising serious questions about the long-term implications for local homeownership and market stability. The current framework, which inadvertently allows real estate purchases through European company formations, further blurs the line between domestic and foreign influence. As such, the Auditor General emphasizes the need for prompt regulatory revisions to ensure transparency, market balance, and economic sustainability.

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Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

February 17, 2026

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

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The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.