Investment Property in Cyprus

Politics

Turkish invasion

A military coup in 1974 – which was supported by the Athens government – led to a Turkish invasion of northern Cyprus. Since that time, the island has been divided into the north part which is occupied by Turkish Cypriots, and the south where the Greek Cypriots live. Dividing the two is the famous ‘Green Line’, passing from Famagusta to Morphou. Turkey only recognises the north part of the island, which has declared itself the ‘Turkish Republic of Northern Cyprus’.

Reunification talks

In recent years, negotiations between the two sides have taken place, with hopes that a resolution would be found before Cyprus was due to join the EU. The two sides failed to agree by the 2003 deadline. However, during the following months travel restrictions were relaxed.

EU membership

Further attempts to reach an agreement before Cyprus’s EU accession in 2004 failed, and its membership today applies only to the southern part. Talks are still ongoing, and Turkey has the incentive of its own potential EU membership if the issue can be resolved.

Government in the south

The Republic of Cyprus is a unicameral democracy with an elected president who acts as both head of state and head of government. The current incumbent is Tassos Papadopoulos who won 51.5% of the vote in the last election on February 16, 2003.

Government in the north

The Turkish Cypriot leader is Mehmet Ali Talat, who has been in power since 2005. Talet is in favour of reunification with the south, and has encouraged the UN and the EU in their efforts towards resolving the issue.

Greek Cypriot opinion

In May 2006, the first parliamentary election since the reunification referendum was held. The result backed the ruling coalition, endorsing leaders who opposed efforts to reunite the island with its Turkish north. The outcome was described by the BBC’s Cyprus correspondent as a clear signal of continuing Greek Cypriot support for the president's stance in rejecting the UN plan for reunification.

Significant election

The pro-reunification, right-of-centre DISY party said it would continue pushing for reconciliation with the Turkish north. The election was notable for the fact that 270 of the ethnic Turks living in the Greek-held part of Cyprus were allowed to vote and to stand for election.

Political stability

Freedom of speech and expression are enshrined in the Cypriot constitution. The country is a member of the EU and the UN, but not NATO. The country’s accession into the EU, despite the ongoing negotiations between the north and south regarding reunification, is testament to the stability of Cyprus’s political environment.