The Council of Ministers Permit in Cyprus for Non-EU Buyers: When It Is Required, Limits and Process

1Who needs a Council of Ministers permit to buy property in Cyprus?

Anyone defined as an "alien" in the Acquisition of Immovable Property (Aliens) Law, Cap. 109, needs a prior permit to acquire immovable property in Cyprus. An Israeli who does not hold citizenship of a European Union or EEA member state falls within that definition. Section 3(1) of the law prohibits an alien from acquiring immovable property - whether during his lifetime or by inheritance - without the prior permission of the Council of Ministers.

The law excludes several groups from the definition, and those who fall within them do not need a permit:

• A citizen of a European Union member state, and a citizen of a state that is a member of the EEA.
• A body corporate incorporated under the law of another EU state, whose registered seat, central administration or principal place of business is in a state that is a member of the EEA.
• A foreign woman married to a Cypriot citizen, as long as she is not separated from him by a court judgment (in the wording of the law).
• A "foreign Cypriot" - a person born in Cyprus while his parents were residing there permanently, or whose father was born there in similar circumstances.

2What counts as an "acquisition" under the law?

The definition is broader than most buyers assume. Under section 3(6), the "acquisition of immovable property" also includes:

• A lease for a period exceeding 33 years, including extension periods that the tenant may exercise unilaterally.
• The acquisition of shares in a Cypriot company that holds immovable property, if the acquisition turns the company into a "foreign-controlled company".
• The creation of a trust for the benefit of an alien that relates to immovable property.

A "foreign-controlled company" is defined in the law as a body in which half or more of the directors, of the voting rights or of the shares belong to aliens, or in which an alien has powers under the constitutional documents that ensure the company will act in accordance with his wishes.

3Does buying through a Cypriot company exempt you from the permit?

This is the most common question, and the answer requires caution. In practice, purchases through a Cypriot company or a European company were handled for years without a permit, and in the Interior Committee discussion in September 2026 a company incorporated in Cyprus or in the EU was described as "local" even where its controlling owners are not EU citizens. On the other hand, the wording of the law itself defines a foreign-controlled company as an "alien", and the exemption for bodies corporate applies to bodies corporate incorporated under the law of another member state. That is, there is a gap between the wording of the law and the practice.

More important: this very gap is one of the targets of the reform being discussed in the House of Representatives. In a February 2026 discussion, a demand was expressly raised to prevent the use of Cypriot companies as an intermediary for foreign buyers, and the Interior Committee set a discussion of corporate purchases for October 2026. Anyone considering a company structure only in order to bypass the permit should assume that the rule may change, and should examine the structure also from the standpoint of tax and operations in Israel and in Cyprus.

4When is the permit needed: before signing or before registration?

Before registration. Section 3(3) provides that a valid contract with an alien does not give him a right to acquire the property until the permit is granted, and section 3(5) provides that any registration made contrary to the law is void. On the other hand, section 3(4) clarifies that the law does not affect an alien's right to act under the specific performance law - that is, an alien may deposit the sale contract at the registry before he has received a permit.

The Interior Ministry clarified to the House of Representatives in August 2025 that the permit is required to complete the transfer into the buyer's name, and is not a condition for submitting the contract. The correct order of actions for an Israeli buyer is therefore: signing, depositing the contract at the registry immediately, submitting the permit application in parallel, and registering ownership after the permit is received.

5What limits apply to the permit?

The law itself sets one express limit: where the purchase exceeds the area absolutely required for building a residence or a place of business, and in any event exceeds two "scales" (a traditional Cypriot unit of area), the permit is subject to additional conditions and criteria set out in regulations. Beyond that, the restrictions are a matter of Interior Ministry policy.

According to guides by Cypriot lawyers, the accepted policy allows an alien to purchase up to two units - for example two apartments, or an apartment and a shop of limited area, or an apartment and an office - or one house on a plot of up to about 4,000 sq m. Ordinary applications for residential use are almost always approved. An exceptional application - large land, many properties or extensive commercial use - requires advance preparation and a reasoned justification.

6How do you submit the application?

The application is submitted on form COMM 145 - an application by an alien for the consent of the Council of Ministers (District Officer) to the acquisition of immovable property - to the office of the District Officer in the district where the property is located. The authority of the Council of Ministers is exercised in practice through the District Officers. According to professional guides, there is no fee for the application, and the Interior Ministry estimates the processing time at about two to three weeks, although in practice the timing depends on the district and the completeness of the file.

1. Signing the contract and depositing it at the registry: within six months of signing, and in practice immediately.
2. Preparing the application file: a signed form COMM 145, a cadastral plan of the property, a copy of the contract, a copy of the passport and any other documents the District Officer requires.
3. Submission to the District Officer: usually through the representing lawyer, on the basis of a power of attorney.
4. Responding to requests for further documents: delays usually stem from a missing document and not from a decision of principle.
5. Receiving the permit and completing the transfer: the permit is presented at the registry upon registration of ownership and payment of the transfer fees.

7What is expected to change? The reform of the Aliens Law

Cap. 109 is under public scrutiny. In August 2025 the Interior Ministry admitted that the law is outdated and needs updating, and Land Registry data presented at the time showed that Israelis are among the largest groups of foreign buyers in the Larnaca, Limassol and Paphos districts. In early 2026 several bills were submitted that proposed, among other things, to prohibit aliens from acquiring agricultural land and land near the ceasefire line or critical infrastructure, to limit plot area, and to apply the arrangement also to assignment contracts and to companies that serve as intermediaries.

As of September 2026, according to a report of an Interior Committee discussion, no amendment has yet been enacted. The government is preparing its own draft, and the committee set a discussion for October 2026 on purchases by corporate entities. According to the published proposals, the change is not intended to apply retroactively to completed transactions or contracts that have been deposited, but the wording of the final law is not yet known. This is another reason to deposit the contract at the registry immediately after signing.

8The permit and the Israeli aspect

The permit changes nothing in the reporting and tax obligations in Israel. An Israeli resident who buys property in Cyprus continues to report income from it in Israel, and there is no double taxation treaty between Israel and Cyprus, so tax planning needs to be done in advance. Nor does the purchase permit grant a right of residence: a residency visa based on investment is a separate procedure at the immigration department, with its own conditions.

9What to do before signing, and how we accompany you

Before signing, we check in what identity it is right to buy - Israeli citizenship, European citizenship or a company - taking into account the permit, tax in Israel and exit plans. We then deposit the contract immediately, submit the permit application in parallel through a partner office in Larnaca, and accompany the file through to registration of ownership. We also follow the reform of the law and update clients whose transactions are still open.

Read next · 8 min readLand Registry Transfer Fees and Stamp Duty in Cyprus: Calculation, Exemptions and DiscountsHow much Cyprus Land Registry transfer fees cost, when a 50% reduction or exemption applies, and what happened to stamp duty from January 2026, with examples.Read the guide

The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.