From July 2019 to October 2025, Cyprus approved 1,888 applications for participation in state housing programs for rural regions, with a total value of €71.5 million. These figures are presented in a supporting document to the Ministry of Interior’s 2026 budget, which places particular emphasis on rural development and improving the quality of life in remote areas.
Under the government schemes implemented by the ministry, families living in mountainous, border, and socially vulnerable areas can receive up to €95,000 in financial assistance to improve their housing conditions. The amount of the subsidy depends on family composition, region of residence, income level, and other criteria.
Cyprus’s New Housing Policy for 2026–2028
In 2026, the eligibility criteria for housing programs are expected to be updated to include more categories of citizens. The annual budget for these programs between 2026 and 2028 will amount to €20 million. Currently, according to the Ministry of Interior:
- Border regions: 1,147 approved applications totaling around €45 million
- Mountainous and remote areas: 327 applications worth €15.5 million
- High-altitude and isolated villages: 103 applications worth €6 million
- Other rural areas: 311 applications worth €5 million
These measures are part of the Comprehensive Housing Policy, aimed at revitalizing rural economies, supporting young families, and improving infrastructure in hard-to-reach regions.
Support for Residents of Mountainous and Remote Areas
In addition to housing subsidies, the government provides annual financial allowances to residents of mountainous and remote regions. Around 10,500 households (approximately 23,600 people) benefit from this initiative, with total payments amounting to about €6 million. Residents of isolated areas receive around €2.5 million, distributed among 5,500 families.
All payments under current schemes are expected to be completed by the end of 2025, and in 2026 the government plans to expand the number of beneficiaries by adding new eligibility categories.
Prospects and Impact on Regional Development
The Cyprus Ministry of Interior emphasized that these programs not only help families address housing needs but also contribute to the revitalization of rural communities, create new jobs, and strengthen local economies. Thanks to these initiatives, rural areas are becoming more attractive places to live, especially for young professionals and families wishing to remain in their hometowns.
In the coming years, authorities intend to make greater use of European regional development funds to continue financing sustainable projects that improve housing conditions, environmental quality, and infrastructure across Cyprus.