New foreign investment rules in Cyprus

Introduction

Cyprus has long been a magnet for overseas property buyers. Blessed with more than 300 days of sunshine a year, beautiful coastlines, a relaxed Mediterranean lifestyle and favourable tax conditions, it has consistently attracted individuals and companies seeking both holiday homes and long-term investment opportunities.

Over the years, foreign buyers have played a major role in the Cypriot real estate market. From single apartments purchased by retirees looking for a warm escape, to entire blocks and developments acquired by large overseas investors, Cyprus has benefited from a steady inflow of foreign capital. For non-EU buyers in particular, the island represented not just a lifestyle investment but also an attractive gateway into Europe.

However, in 2025 the government introduced significant changes to the rules that govern foreign investment in Cyprus. These changes were not made lightly. They reflect both EU-level requirements and domestic concerns about transparency, security and the need to protect sensitive assets.

This article explains the new foreign investment rules in plain English. It covers what has changed, how these changes affect ordinary property buyers, and why working with a trusted local partner such as investments.cy is now more important than ever.

The background to the 2025 changes

To understand why new laws were necessary, it helps to look at the background.

Cyprus has always welcomed overseas buyers. For decades, property transactions involving non-Cypriot nationals were approved through a relatively simple administrative process. In practice, most applications were accepted quickly, with few questions asked.

But as the property market expanded, concerns began to emerge:

1. National security risks – Some foreign buyers were acquiring large land parcels close to sensitive sites such as military bases, infrastructure hubs or border areas. This raised questions about control and strategic security.
2. Opaque ownership structures – In some cases, purchases were made through offshore companies or complex arrangements, making it difficult to know the ultimate beneficial owner of a property.
3. Rapid development pressures – Entire developments, often funded by foreign investors, were being approved without full consideration of infrastructure capacity, environmental impact or long-term planning needs.
4. EU harmonisation – The European Union has been encouraging member states to establish clear Foreign Direct Investment (FDI) screening mechanisms. Cyprus, as a member state, was expected to fall in line with these standards.

By 2025, the government decided that reform was overdue. The aim was not to block foreign investment — far from it. Cyprus remains keen to attract international capital. Instead, the changes were designed to create a transparent, fair and structured process that balances openness with national interests.

What has actually changed in 2025?

The new laws introduced in 2025 can be grouped into three broad areas:

1. A national screening mechanism for foreign investments

Cyprus has now established a formal FDI screening process. This means that certain transactions, particularly those involving large amounts of capital, strategic assets or sensitive sectors, will be reviewed before approval is granted.

In plain terms:

• If you are buying a small apartment for personal use, you are unlikely to be affected beyond the usual paperwork.
• If you are purchasing an entire block of flats, a development plot, or land near sensitive areas, your purchase is more likely to trigger a review.

2. Stricter documentation requirements

Previously, approvals were often granted with minimal documentation. Under the new system, non-EU buyers must provide clear evidence of ownership structures, source of funds, and intended use of the property.

The government is closing loopholes that allowed investors to obscure who ultimately controlled a property. The emphasis is on transparency.

3. Longer timelines for approvals

Although the authorities aim to process applications efficiently, the new screening mechanism naturally involves more checks. Buyers must be prepared for longer timelines, particularly when acquiring larger or more sensitive assets.

What the changes mean for different types of buyers

Everyday buyers of apartments and villas

For most individuals looking to purchase a holiday home or a retirement property, the impact is minimal. You will still need to apply for approval, but this step remains largely procedural. The difference is that you may be asked for slightly more paperwork, and the process may take a little longer than in the past.

Buyers of land and development opportunities

If you are considering purchasing a large plot of land, a building for redevelopment, or a significant share in a development project, the rules become more relevant. These are precisely the types of transactions that the government intends to screen more carefully.

Authorities will look at:

• The size of the deal.
• The location of the property.
• The nature of the proposed development.
• The identity of the ultimate buyer or investor.

Corporate and institutional investors

For companies and funds looking to invest in Cyprus, compliance is now a central concern. Corporate buyers must provide full ownership disclosures and be prepared to answer questions about their strategic intentions.

The process is stricter, but it is also clearer and more predictable than before. Investors who plan carefully and work with experienced local partners can still achieve their goals without undue obstacles.

Why the new rules are not a deterrent

It is natural to feel cautious when hearing about new restrictions or screening mechanisms. However, the changes should not be seen as discouraging foreign investment.

On the contrary, by introducing transparency and structure, Cyprus is actually making itself a more stable and credible destination for international buyers. Clear rules reduce the risk of sudden surprises or inconsistent decisions.

For smaller buyers, the process remains straightforward. For larger buyers, the key is preparation and proper advice.

The role of investments.cy in navigating the new rules

At investments.cy, we specialise in guiding clients through the property market in Cyprus. Our portfolio covers everything from individual apartments to entire blocks, luxury villas, land, and full development opportunities.

The 2025 changes make our role more important than ever. Here’s how we help:

1. Expert knowledge of the law

We track the changes in legislation closely and understand how they apply to different types of property transactions. This means we can advise you upfront on whether your deal is likely to require additional approvals.

2. Preparation of documentation

Because the new system places a strong emphasis on paperwork, having a professional team prepare your application is crucial. We ensure that your ownership structures, financial documents and supporting information are clear and complete.

3. Filtering opportunities

We only present clients with properties that can realistically be purchased under the new rules. This saves you time and ensures that your investment is achievable.

4. End-to-end support

For larger transactions such as land purchases or development projects, we coordinate everything — from legal checks and negotiations to liaising with government offices. Our local relationships help ensure that your application moves forward smoothly.

5. Risk reduction

By identifying potential issues early and addressing them before they become problems, we minimise the risk of delays or refusals.

In short, we give you confidence in an environment where the rules have become stricter and more complex.

How the new rules affect timelines

One of the most common questions we receive is how long approvals now take.

• For small purchases (like a single apartment): approvals remain relatively quick, though a little longer than before.
• For large or sensitive purchases: approvals may take significantly longer, as they may be referred to additional government bodies for screening.

As a buyer, the key is to plan ahead. Do not expect an immediate transaction. Build extra time into your schedule, especially if you are acquiring land or development opportunities.

Why transparency benefits serious investors

While it may feel inconvenient to provide extra documentation, transparency is ultimately in the best interests of serious investors.

• It ensures that only genuine, legitimate buyers enter the market.
• It protects property values by preventing speculative or opaque practices.
• It reassures the public and policymakers that foreign investment benefits Cyprus rather than undermining it.

For committed investors, this creates a healthier and more sustainable market in the long term.

Practical advice for buyers under the new rules

1. Budget more time – Do not assume approvals will be instant. Allow for delays.
2. Gather documentation early – Have your financial papers, ownership structures and identity documents ready.
3. Choose professional support – Work with an experienced local partner like investments.cy to navigate the process.
4. Be transparent – Provide clear and honest information. Attempting to hide ownership details or funding sources will only cause problems.
5. Stay informed – Laws may continue to evolve. Keeping up to date is essential.

Looking ahead: the future of foreign investment in Cyprus

The 2025 changes mark a turning point, but they are not the end of the story. As Cyprus adapts to EU standards and local realities, we may see further refinements in the coming years.

However, one thing is clear: Cyprus remains open to foreign investment. The island continues to offer an attractive combination of lifestyle benefits and financial opportunities. By setting up a clear and transparent system, the government is strengthening investor confidence and ensuring that the market remains healthy.

Why ordinary buyers should not worry

For most people buying an apartment, villa or retirement home, the changes are relatively minor. You will need to go through the approval process, but this has always been the case. The difference now is that the process is slightly more formal.

If anything, the changes are aimed at large-scale investors and complex ownership structures, not individuals buying a home for themselves.

How investments.cy makes it easy

At investments.cy, we simplify the process:

• We explain the rules in plain language.
• We help with applications and documents.
• We advise on realistic timelines.
• We filter properties to ensure compliance.
• We support you from start to finish.

Whether you are buying a holiday flat, a luxury villa, or an entire development site, we make sure you understand the process and are well-prepared.

Conclusion

The 2025 foreign investment rules in Cyprus introduce greater scrutiny and more formal procedures, particularly for large or sensitive purchases. While some buyers may experience longer timelines and stricter documentation requirements, these changes ultimately create a fairer, more transparent and more stable market.

For ordinary buyers, the impact is minimal. For larger investors, preparation and professional support are essential.

Cyprus remains one of the Mediterranean’s most attractive destinations for property ownership. With expert guidance from investments.cy, you can navigate the new rules with confidence and turn opportunity into success.

FAQs

What are the new foreign investment rules in Cyprus 2025?
They establish a formal screening process for certain foreign investments and tighten approval requirements, particularly for large, sensitive or strategic property purchases.

Do non EU buyers need approval to buy property in Cyprus?
Yes. Non-EU buyers must still obtain approval, as they always have, but the process is now more structured and requires more documentation.

How long does approval take under the new system?
Timelines vary. Small purchases may still be processed relatively quickly, while large or sensitive deals may take longer because of additional reviews.

Will these rules affect small apartment purchases?
Generally no, beyond slightly more paperwork. Small apartment purchases for personal use are unlikely to be blocked.

Are EU citizens also affected by the new law?
EU citizens face far fewer restrictions. The new rules are primarily aimed at non-EU buyers and large or strategic investments.