The Cyprus Real Estate Development Association welcomed the unanimous approval by the House of Representatives of the new law establishing a framework for the control of foreign direct investments (FDI), marking Cyprus’ full alignment with the EU’s screening regulation.
The legislation introduces stricter screening of investments that could affect national security, focusing on “sensitive strategic areas”, and creates a national mechanism to monitor them.
It brings Cyprus in line with the EU’s FDI Screening Regulation, in force since October 2020.
Under the new framework, any foreign investment exceeding €2 million will be subject to review, while property acquisitions will fall under scrutiny only when linked to “vital infrastructures”, a list the government is expected to finalise in the coming months.
Until then, the Finance Ministry will issue interim guidelines for investors.
The law also clarifies that dual nationals will not be considered foreign investors, while those designated as such must inform the national authority before proceeding.
Moreover, the authority will have powers to impose conditions or fines where necessary.
According to the association, the new framework marks a significant step towards greater transparency and credibility, reinforcing Cyprus’ position as a reliable and modern investment destination within the EU.
“The introduction of clear and consistent rules will strengthen market stability and investor confidence,” it said.
It added that the framework strikes the right balance between safeguarding national security and keeping Cyprus open and competitive for foreign investment.
According to its statement, the association said that it “will continue to follow the law’s implementation and contribute to public dialogue aimed at maintaining a stable and sustainable investment environment for the benefit of the Cypriot economy and society.”