Foreigners Driving Cyprus Property Prices Through The Roof: Bypassing Laws And Raising Concerns

by THEFUTURE.TEAM

January 31, 2025

Foreign buyers are sweeping up land across Cyprus, sidestepping local regulations, and pushing property prices to unprecedented levels. Meanwhile, this trend is creating a housing crisis for residents, particularly young couples who are struggling to find affordable homes.

While legislation does exist, including restrictions on foreign ownership, it appears to be easily bypassed. Sources close to the matter suggest that foreigners are increasingly purchasing property via legal entities, such as companies, which allows them to sidestep the scrutiny intended by the law.

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The issue has been a topic of public debate for some time, but now it’s taking center stage in a more focused manner, thanks to a new parliamentary push. Today, the parliamentary Interior Committee will discuss a bill introduced by Nikos Georgiou, the DISY MP for Famagusta.

Representatives from the Ministry of Interior, the Department of Land and Surveys, the Ministry of Finance, the Legal Service of the Republic, and the Registrar of Companies and Intellectual Property have all been invited to share their views. They will be tasked with shedding light on the growing issue of foreign buyers bypassing the law by acquiring property through companies and trusts.

Tightening The Legal Framework

Georgiou’s proposed bill aims to modernize Cyprus’ property acquisition laws for foreigners, ensuring more transparency and tightening controls. According to the explanatory memorandum, the aim is to protect public interests by improving the monitoring process, enforcing stricter due diligence, and ensuring professionals like lawyers and accountants adhere to stringent ‘Know Your Client’ (KYC) guidelines.

The proposed law would essentially embed these professionals into the process, ensuring they verify the identity of foreign buyers before any property transactions can go through. This move mimics anti-money laundering practices and aims to close the loopholes that allow foreigners to bypass local controls by using legal entities.

Loopholes For Companies

As citizens and officials raise concerns, the current law (Article 3) already imposes restrictions on foreign individuals purchasing real estate, which requires prior approval from the Council of Ministers. The legislation also sets clear boundaries for the area of land a foreigner can acquire, ensuring it remains within manageable limits for residential or business purposes.

However, as pointed out by Nikos Georgiou in a parliamentary question last summer, there is growing evidence that foreigners are exploiting these laws by buying property through companies. This raises the question: why should restrictions exist for individuals if they can easily circumvent the law through corporate structures?

As legal expert George Koukounis pointed out years ago, any foreigner can establish a Cypriot company to purchase property without facing the same constraints. The problem lies in why natural persons face limitations when they can bypass these through a company.

European Perspective On Foreign Property Ownership

While Cyprus isn’t the only country facing these issues, it does stand out. Across Europe, many countries have taken steps to address similar concerns.

In Finland, a recent report called for stricter legislation to prevent foreigners from acquiring property, especially from countries whose actions threaten national security. In the UK, transparency rules and anti-money laundering measures are in place, ensuring more thorough checks on foreign buyers. Meanwhile, in Greece, foreign purchases are restricted in border regions and require special permits from the Ministry of National Defense.

These measures reflect the growing sense of caution in Europe over foreign ownership of land and property. The increasing concerns in Cyprus may well push for similar reforms, with calls for greater scrutiny of foreign buyers becoming louder by the day.

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Tax Reform Breakthrough In Cyprus: A Strategic Win-Win For Government And Coalition Parties

by THEFUTURE.TEAM

December 12, 2025

Government Secures Majority While Coalition Parties Reap Political Benefits

Yesterday’s agreement between Finance Minister Makis Keravnos and the coalition parties—representing DIKO, DISY, and DIAPA—has been hailed as a win-win solution for all stakeholders. The government has ensured the required parliamentary majority to swiftly pass a tax reform package that largely meets its criteria, while the coalition members have seized the opportunity to introduce tailored modifications that benefit tens of thousands of citizens. This strategic move, coming at a critical juncture in the pre-election campaign, marks the second major government reshuffle and appointment of seasoned figures, excluding EDEK.

Key Reforms And Financial Implications

According to reports, the reform is slated to take effect on January 1, 2026. The most significant changes will be incorporated via party amendments rather than separate government-proposed bills. The only immediate change on the government’s side will be an increase in tax relief for certain families—from incomes up to €80,000 to incomes up to €90,000—accordingly reducing the fiscal burden by an estimated €110 million annually.

Principal Amendments In The Reform Package

Enhanced Tax-Free Threshold: The exemption will rise from the current €19,500 to €22,000, with an intermediate proposal of €20,500 already on the government’s agenda. This adjustment represents an additional €1,500 per taxpayer, creating a projected extra cost of €45 million to the state.
Increased Income Caps For Family Tax Relief: The thresholds for annual family income qualifying for tax deductions will be raised incrementally. For instance, a family with one child will now be eligible for deductions up to €90,000; for two children, the limit rises to €100,000, with higher thresholds delineated for larger families.
Augmented Tax Deductions For Dependents: The tax relief for children and students (up to age 23 for women and 24 for men) will be calculated on a graduated scale. Families with one child retain a €1,000 deduction, while those with two or more benefit from progressively increased deductions up to €1,500 per child when the family has three or more children.
Boost in Interest Deductions: The deduction for interest on mortgage loans and rental payments will be raised to €2,000 from the originally proposed €1,500, whereas the green investment incentive remains at €1,000.
Revised Tax Brackets: The proposal outlines new tax rates as follows: 20% for incomes between €22,001 and €32,000; 25% for incomes from €32,001 to €42,000; 30% for incomes between €42,001 and €72,000; and 35% for earnings exceeding €72,001. Additional party amendments aim to meet the pre-election promise of increasing the tax exemption to €24,000 and abolishing the stamp duty, which currently generates €35 million compared to the €20 million planned in the government proposal.

Measures To Curb Tax Evasion And Ensure Fiscal Discipline

The Finance Ministry has stipulated that any amendments must not dilute the stringent measures against tax evasion and abusive practices embedded in the reform package. The proposals already include several safeguards such as strict controls over businesses with outstanding tax liabilities and new mechanisms to secure revenue against defaults.

Political Endorsement And Coalition Consensus

In a recent statement, Finance Minister Makis Keravnos confirmed the ministry’s acceptance of the revised non-taxable thresholds and graduated income criteria. He noted, “For families with five or more children, the upper income limit for tax relief increases significantly, reaching up to €200,000.”

Christiana Erotokritou, President of the Economic Committee at DIKO, praised the minister’s openness to the coalition’s amendments. She emphasized that DIKO is committed to achieving consensus and collaboration on economic issues to maintain Cyprus as an attractive hub for business.

Similarly, DISY’s Onurphios Koullas stressed the importance of a parliamentary majority and governmental consensus in ensuring a positive outcome for the nation’s economy, while DIAPA’s Alekos Tryfonidis highlighted that the reforms are designed to benefit low-income earners, the middle class, and small businesses within the established fiscal framework.

Mixed Reactions And Continuing Debate

Despite the overwhelming support from the coalition, some parliamentary parties expressed surprise and dismay at their exclusion from the meeting, arguing that similar proposals had been under consideration. Criticism also came from representatives such as SoTiris Ioannou from ELAM, who noted that proposals for incremental increases in family income thresholds and tax credits were submitted as early as last September. Environmental advocate Stavros Papadouris also criticized the selective attendance at the meeting, suggesting that several proposals originated from his own movement.

According to sources in the Finance Ministry, the meeting was initiated not by the minister but by the participating coalition parties, underscoring the dynamic interplay of political negotiation in the nation’s tax reform process.

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