REAL ESTATE & PROPERTY LAW
Cyprus has long positioned itself as one of the more welcoming European jurisdictions for foreign real estate buyers. That openness is now being scrutinised, and the legislative framework that has governed foreign acquisitions for decades is on the verge of significant revision.
A package of proposed amendments, currently moving through parliamentary process, would introduce considerably tighter controls on property purchases by third-country nationals. Under the proposals, non-EU buyers would be limited to acquisitions below a specified area threshold. Purchases of agricultural land and rural plots would be prohibited outright, as would any acquisition near sensitive national infrastructure, including ports, airports, coastline, and military zones. The proposals also target the use of Cyprus-registered companies as vehicles for indirect foreign acquisition, with draft legislation aiming to close what has been characterised as a significant transparency gap.
The political momentum behind these reforms is strong. What remains to be seen is the precise legal shape they take, and the timeline for implementation. Importantly, the tax environment for property has also shifted under the 2026 reform package. The lifetime CGT exemption on the disposal of a primary residence has been raised substantially, and the threshold at which indirect real estate exposure through company share sales triggers CGT liability has been tightened.
For investors, developers, and anyone currently structuring a property transaction in Cyprus involving non-EU parties, the window before these changes crystallise into law is the moment to act, or at minimum, to take legal advice on what is coming.
Key Takeaways
- Proposed restrictions on non-EU property acquisitions are advancing in Parliament
- Agricultural land and coastal/infrastructure-adjacent plots would be off-limits for non-EU buyers
- Use of Cyprus companies to circumvent restrictions is explicitly targeted in the draft legislation
- Primary residence CGT lifetime exemption raised to €150,000 under the 2026 tax reform
- CGT now triggered where a company derives 20% or more (previously 50%) of its value from Cyprus property
