On March 2, 2026, a new government program to support home purchases came into effect in Cyprus. The Ministry of Interior announced the launch of the sixth stage of the housing plan aimed at revitalizing mountainous, border, and less developed regions of the country. The initiative is designed to encourage people to purchase housing and live permanently in these regions.
The Municipality of Paralimni – Deryneia reported that its territory falls into the category of border areas covered by the program. This means that residents and potential property buyers here will be able to apply for financial assistance from the state when purchasing their own house or apartment for permanent residence.
Special attention is being given to the development of small settlements and regions where the authorities aim to stop population decline and stimulate the growth of the local economy.
Which areas are included in the program for the first time
As part of the new stage of the program, part of the municipal district of Paralimni has been included for the first time. This expands opportunities for people who want to purchase housing in this popular area of eastern Cyprus.
The municipal districts of Deryneia, Frenaros, and Acheritou are fully covered by the program. These settlements are located in the free areas of Famagusta and are considered border territories where the state actively supports the development of residential infrastructure. According to the authorities, including these areas in the program should increase interest in property purchases and attract new permanent residents.
Up to 50% of housing costs: how much can be received
The main goal of the program is to help people acquire their own housing for permanent residence. The state compensates part of the expenses for purchasing or building property. The amount of financial assistance can reach up to 50% of the total cost of the housing. At the same time, the minimum amount of expenses considered when calculating the subsidy is 20 thousand euros. The maximum amount of state support can reach 60 thousand euros.
The exact amount depends on several factors. These include the composition of the applicant’s family as well as the specific settlement where the property is being purchased. The maximum subsidy amounts are detailed in the official guide for the implementation of the program.
Application deadlines
Applications for participation in the program can be submitted until December 31, 2027. Applications must be submitted to the district administrations of Cyprus. The administration should be chosen depending on the district where the property is being purchased.
It is important to note that applications are reviewed according to the order in which they are received. The submission date is considered the day when the application is officially accepted and registered. This affects the order of review and decision-making.
Who will receive financial support
Financial assistance will be available only to applicants whose submissions receive a positive evaluation. At the same time, payments will also depend on the availability of funds in the state budget. Therefore, experts advise submitting documents as early as possible to increase the chances of receiving the subsidy.
Why this program is important for Cyprus
Housing programs of this type have been part of the government’s regional development strategy in Cyprus for several years. The authorities aim to support small towns and villages where population decline has been observed. In addition, such subsidies stimulate the real estate market, especially in areas outside major cities. This helps develop local infrastructure, support the construction sector, and attract new families to less populated regions of the island.
In recent years, demand for housing in Cyprus has continued to grow, especially among young families and people who want to move from large cities to quieter areas. The new program may become an additional incentive for purchasing property specifically in the border and rural regions of the country.