Two decades after Cyprus approved the construction of 14 golf courses, the island's government has decided to revoke the permits of developers who fail to pay the €5m compensation required by law to the Treasury on time.
There are currently only four fully operational golf courses on the island: Aphrodite Hills, Minthis, Elea and Secret Valley. All of them are within the administrative boundaries of Paphos. Meanwhile, Limassol Greens in Asomatos is under construction and Eagle Pine Golf Resort in Paramali is in the preliminary stages of development.
The Ministerial Committee, after consultation with the Cyprus Association of Large Developments (CALD), recently considered requests for policy changes in relation to golf course projects. These included requests for the removal of deadlines for obtaining the necessary permits and completing projects, as well as a €5 million compensation fee. In the end, after lengthy discussions and on the advice of the Cypriot Minister of the Interior, the Authority decided to reject the request for the cancellation of the compensation fee. In doing so, it agreed to a structured repayment plan.
Under the new policy, the developers are required to repay the entire debt in two equal instalments over the course of one year. The first half must be repaid within six months of the Cabinet decision and the remainder within a further six months.
Failure to pay the first or second instalment on time will be grounds for revoking the town planning permit for such projects. The move, which does not require prior approval from the ministerial committee, also cancels any building or subdivision permits issued earlier.
Developers who pay their arrears on time can expect to receive all necessary permits. Their applications will be reviewed in a timely manner and the Planning Authority will assess the progress of each project. Recommendations will then be made for individual completion dates for each golf course.