On Thursday 10 April, the Cypriot Parliament approved a bill proposed by the Refugee Committee.
The changes are aimed at easing the financial burden on participants in the state KtiZO programme, which helps to improve housing conditions in areas with a high proportion of displaced persons.
Specifically, all beneficiaries of the state scheme will be exempted from paying capital gains tax if they sell their property to the state or a private developer as part of a KtiZO project. This decision emphasises that such transactions are not for commercial gain but to facilitate the renovation and development of the housing stock.
The second bill provides for a full exemption from state fees and charges for the transfer of property, registration of title or registration of a mortgage, if this is done under the above-mentioned state scheme. This innovation will make it easier and cheaper to participate in the project.
The third major change relates to amendments to the Central Equitable Burden Sharing Agency Act. Specifically, the standard levy of 0.4% of the sale price of a property in case of transfer of ownership under the KtiZO programme will be abolished. This is expected to create a more transparent and fairer environment for participants in the scheme.
It is worth noting that during the discussions in Parliament, MPs stressed the need for such an initiative.
They noted that these transactions should not be seen as commercial, as the main objective is to improve living conditions, especially for refugees and low-income families. These measures must apply not only to refugees, but also to their relatives living in settlements built for displaced persons, if the property is used as a primary residence.
To obtain the exemption from taxes and fees, the beneficiaries must provide proof of their status in the form of a certificate from the Land Department. The corresponding tax exemption certificate will then be issued immediately.
The amendments are intended to encourage Cypriot residents to participate in the KtiZO project and to speed up the process of renovating housing infrastructure. In addition, the government wants to support vulnerable families in this way. According to officials, this is another step towards a more inclusive and fair social policy in the real estate sector.