CYPRUS Trends and Developments Contributed by: Marios Konstantinou and Stalo Konstantinou, George K. Konstantinou Law Firm
of the housing problem (creation of affordable housing), countryside revival and sustainability are among the challenges and needs identified in the Ministry of the Interior Action Plan 2025. Legislation proposals for foreign buyers Third-country nationals need permission from the Council of Ministers to buy land in Cyprus. The procedure, though uncomplicated, takes two to four weeks and needs reform. The Min - istry of the Interior has submitted a bill to set a two-week limit for the process and introduce changes to guarantee transparency and order - ly regulation. Under the new bill, applications should be accompanied, inter alia, by: • a copy of a clear criminal record from the buyer’s country of origin and/or residence; and • documents certifying the completion of due diligence and “know your client” procedures. The new bill generally overhauls documentation and processes. Permissions will be registered electronically in a record curated by the Ministry Secretary when granted. Government policies The government has acknowledged that afford - able housing is a central issue in real estate. In a press release dated 29 January 2025, the Presi - dency of the Republic summarised government policies and schemes regarding housing. The government will allocate funding with a budget of EUR75 million to address citizens’ housing needs. In 2025, the major policies to be implemented are: • the new Plot Allocation Scheme in commu - nities, offering plots at 25% of their market value;
• the revised Housing Subsidy Scheme for individuals over 41 years old, with financial assistance of up to EUR50,000; • the revised refugee housing schemes of the Service for Care and Rehabilitation of Dis - placed Persons, under which several young displaced persons will benefit; • an increased subsidy of 20% for all housing schemes for countryside home acquisition in rural and disadvantaged areas (with a focus on young, displaced persons); and • a further EUR70 million budget to revitalise the countryside. Meanwhile, land developers will be allowed a higher building density factor if they sell part of their new development at affordable prices or make a financial contribution to the Cyprus Land Development Association (a government organisation set up in 1980 to help with housing issues). Establishment of the District Local Government Organisations Establishing District Local Government Organi - sations is expected to introduce flexibility in land registration and building/construction permis - sions. These Organisations are public law bodies with comprehensive powers over water supply, sewage, refuse, finances and land registration. New building permission timelines On 3 February 2025, the Ministry of the Interior announced the start of a new, flexible system of building permissions. Some procedures will be automated. In sum, the scheme provides for the following. • Building permissions for houses (double or single) are issued within 20 working days. This covers about 30% of applications.
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