The Cyprus Real Estate Development Association has welcomed the House of Representatives’ unanimous approval of a new law designed to regulate foreign direct investments. The legislation, aligning Cyprus fully with the European Union’s screening regulation since October 2020, is a significant step in safeguarding national interests and elevating the island’s investment framework.
Aligning With EU Standards
The new law introduces a stringent review process for investments that could affect national security. Focusing on “sensitive strategic areas,” the legislation establishes a dedicated national mechanism to monitor such investments, ensuring that Cyprus remains compliant with EU regulations.
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Comprehensive Investment Screening
Under this framework, any foreign investment exceeding €2 million is subject to thorough scrutiny. Additionally, property acquisitions will be evaluated when associated with vital infrastructures—a detailed list expected to be finalized in the ensuing months. In the interim, the Finance Ministry will provide provisional guidelines to assist investors.
Clear Definitions and Enforcement Measures
The law clearly differentiates between dual nationals and foreign investors, exempting the former from additional review. Meanwhile, designated foreign investors must notify the relevant national authority prior to proceeding with their investments. Authorities are also empowered to impose conditions or fines to enforce compliance.
Enhancing Market Stability and Confidence
The association emphasized that the introduction of a transparent and consistent regulatory framework will bolster market stability and investor confidence. By striking an equilibrium between protecting national security and fostering an open, competitive investment climate, the legislation reinforces Cyprus’s reputation as a modern and reliable destination for foreign investment.
The Cyprus Real Estate Development Association remains committed to monitoring the law’s implementation and contributing to public discourse, ensuring that the investment environment continues to support the economic and social benefits for the nation.







