The Cabinet of Ministers of Cyprus has approved the extension of the 'Urban Development Incentive Scheme' until 31 December 2025 in order to stimulate development activity in the country.
The decision was taken following an evaluation of the scheme's performance and in view of its significant contribution to economic recovery.
Deputy government spokesman Niovi Parisinou said that since the launch of the scheme until April 2024
Cyprus has received 1,065 applications from interested parties, of which 869 have been approved and 87 are still pending.
As a reminder, in order to improve the scheme, the Cypriot Cabinet of Ministers approved in December 2023 amendments to the State Programme which, inter alia, relate to:
- Increasing the amount of compensation depending on the type/category of development from 10% to 20% of the total value for properties exceeding the development ratio, up to 50% in all cases without exception and up to 70% for developments outside certain areas.
- Payment of compensation before the issuance of a building permit to the National Housing Authority Special Fund, which is the implementing body of the government's housing policy, to support affordable housing.
- Application for a building permit within two years of the granting of a town planning permit for all developments without exception, to allow the necessary time for the preparation of technical studies and to create a stable environment for investors.
The plan is expected to contribute to the government's efforts to attract foreign investor interest in large-scale and strategically important developments, thereby strengthening the country's economy.