Cyprus Plans Reforms to Construction Fees

The Ministry of Interior of Cyprus has submitted for public consultation until February 27 a draft amendment to the “Roads and Buildings” regulations for 2026. The goal is to replace the current complex system for calculating construction license fees with a simpler and more efficient model. The initiative was prepared jointly with the Scientific and Technical Chamber (ETEK) and is aimed at accelerating permit issuance, increasing transparency, and simplifying tariffs.

How fees will be charged and when refunds are possible

According to the proposal, all fees must be paid simultaneously with the application submission. If an overpayment is identified, the difference will be refunded. If the application is withdrawn in writing within 20 days, 20% of the amount will be retained, and the remainder returned to the applicant. If a project does not fall under any category of the annex, the fee amount will be calculated according to a methodology approved by the minister, respecting the principle of proportionality.

Fees are not charged for the construction, reconstruction, conversion, extensions, repair, or demolition of public-use buildings and schools, except private ones. For licenses where fees were already paid before the publication of the new rules, recalculation will not be carried out. If a license is approved before publication but fees are not paid, the previous procedure applies provided that the amount under the old rules is lower and is paid within 60 days.

New rates for construction permits (A1)

New rates will be calculated as follows:

1. Residential development — 3.50 euros per 1m2 of covered area
2. Commercial and office projects — 10 euros per 1m2
3. Industrial facilities, craft enterprises, and warehouses — 8 euros per 1m2 of covered areas plus 1 euro per 1m2 of open zones
4. Tourist properties — 10 euros per 1m2
5. Educational institutions — 6 euros per 1m2
6. Healthcare and social facilities — 10 euros per 1m2
7. Sports complexes — 5.00 euros per 1m2 of covered areas and 2 euros per 1m2 of open territories
8. Cultural and entertainment projects — 10 euros per 1m2
9. Religious structures and cemeteries — 1 euro per 1m2 of land

Agricultural facilities:

1. Livestock buildings and fish farms — 0.7 euros per 1m2 of covered areas
2. Greenhouses and anti-hail structures — 0.07 euros per 1m2
3. Agricultural warehouses — 0.70 euros per 1m2 with a minimum of 100 euros

Infrastructure projects:

1. Substations, treatment facilities, pumping stations, and desalination plants — 10 euros per 1m2 with a minimum of 500 euros
2. Mobile communication antennas — 1,000 euros when installed on a roof and 1,500 euros when placed on the ground
3. Solar power plants — 1.50 euros per 1m2 of area
4. Wind farms — 1% of the estimated value of construction works

Additional works:

1. Parking areas and landscaping — 4 euros per 1m2 of land
2. Fencing — 300 euros.
3. Swimming pools — 12 euros per 1m2 of water surface

Land division and other fees (A2 and other categories)

The following calculations are proposed in these categories:

1. Land division — 0.40 euros per 1m2 of formed plot or open public space with a minimum of 500 euros
2. License amendment — 500 euros
3. Building division — 40 euros per unit
4. Amendment of building division — 40 euros per modified unit
5. Opening or construction of a road — 100 euros
6. Boundary adjustment — 100 euros
7. Notification of exemption from the obligation to obtain a permit — 100 euros
8. Demolition permit — 100 euros per above-ground floor
9. Copy of license — according to actual additional costs
10. License extension — 100 euros.
11. License reissue — 25% of the original fee with a minimum of 100 euros
12. Approval certificate — 5% of the initially calculated fee with a minimum of 150 euros
13. Application under special decrees — 200 euros per unit
14. Reissue requiring new or additional studies — calculation according to the basic formula without reduction coefficients

What this means for the market and investments

The construction sector remains one of the drivers of the Cyprus economy: amid stable housing demand and active development of renewable energy projects, real estate and infrastructure projects are valued at hundreds of millions of euros annually. Simplifying fee calculations and introducing clear tariffs should reduce administrative delays, increase cost predictability for developers, and accelerate project launches.

Authorities emphasize that the new system is oriented toward digital application processes and faster review. For investors, this means reduced regulatory risks, and for citizens — clear rules and transparent payments. Public consultation will continue until February 27, after which the document may be submitted for approval taking into account the comments received.