The Cypriot House of Representatives has approved an EU-aligned foreign investment screening law designed to shield critical infrastructure—from airports and ports to energy networks—against security and public-order risks.

The bill passed with AKEL’s three amendments rejected, capping an acrimonious, campaign-flavoured debate bristling with references to “golden passports,” Russian oligarchs, ideology and the housing crisis.

Under the new framework, foreign investors must notify the competent authority of planned FDI worth at least €2 million when it concerns sectors of strategic importance. The authority can impose conditions, block deals, or levy administrative sanctions for violations. It may also review non-notified investments for up to five years after completion and examine deals even outside mandatory notification if there are grounds to believe public security or order could be affected. Decisions are appealable at the Administrative Court.

The law also creates an Advisory Committee to support the screening authority, mandates regular reporting to the Council of Ministers, and clarifies that natural persons with dual Cypriot nationality are not treated as “foreign investors.”

Although land and real-estate transactions fall under the regime only when essential to the operation of vital infrastructure, the government plans to map critical assets and, until that is finished, will publish guidance referencing the EU framework. According to parliamentary briefings, the law enters into force on 2 April 2026.

AKEL argued its amendments—aimed at reining in real-estate sales to buyers from third countries and adding environmental and labour safeguards—were necessary amid a housing crisis and soaring prices. Citing data that about 27% of recent property sales involve non-EU nationals, AKEL MPs warned of consolidation in health, banking and property, and called for tighter purchase criteria.

Rival parties countered that the amendments were unrelated to the security-focused, harmonisation bill, insisting that separate legislation—already being prepared by committees and the government—will address uncontrolled land sales and housing pressures. DIKO, DISY, DIPA, EDEK and the Greens broadly backed the screening mechanism as a targeted tool to deter hostile or high-risk acquisitions without chilling growth and innovation.

The exchanges quickly widened to legacy battles over the passports scheme, the 2013 financial crisis, and alleged ideological “obsessions.”

• Scope: Investments affecting vital infrastructure (e.g., airports, ports, energy, etc.).

• Threshold: €2,000,000 for mandatory notification in relevant sectors.

• Powers: Conditions, prohibitions, administrative penalties, five-year ex-post review.

• Governance: Advisory Committee, reporting to Council of Ministers.

• Legal clarity: Dual nationals not deemed foreign investors; written approval required.

• Timing: In force 2 April 2026.

• Next steps: Critical-infrastructure mapping and Finance Ministry guidance.