Cyprus has implemented a new energy efficiency standard for buildings — Directive 4/2025 — which aims to promote sustainable construction using renewable energy sources (RES). These new regulations will be in effect until December 31, 2029.
Developers will receive a bonus of up to 5% additional development
According to the updated directive, developers of residential complexes can receive a 5% increase in the permitted building coefficient if their projects use RES. This applies to sites covered by Special Development Decrees (K.D.P. 322/2024 and K.D.P. 60/2025).
Applications to take advantage of the new incentive can now be submitted. This approach is particularly beneficial for those building in promising residential areas, where every percentage point of development counts.
Simplified path to permits
If a developer has obtained a permit under the aforementioned decrees and applies for the incentive under Directive 4/2025, documents submitted for a building permit or division (Α12) will be processed via an accelerated procedure. This accelerated procedure is regulated by the provisions of K.D.P. 32/2025 and K.D.P. 91/2025.
When submitting an application through the Hippodamos system, it is important that the designer indicates that the property uses an additional building coefficient. These conditions will be officially reflected in the issued permit.
Simplified bureaucracy and digital submission
Under the new rules, no separate confirmation from the Energy Service is required. The competent authority will automatically forward information about the project, together with the Energy Performance Certificate and the building permit, directly to the director of the service via the same Hippodamos digital platform.
These innovations are part of Cyprus's strategy to improve energy efficiency and combat climate change. Simplified procedures and financial incentives will make green construction more profitable, efficient, and popular among developers.
In this way, Cyprus is adapting to EU requirements and moving towards smart cities and sustainable development, opening up new opportunities for investors and future residents.