Due to the introduction of new rules to control the coronavirus pandemic the Cyprus Ministry of Finance announced new measures to support tenants and tax incentives for property owners.
The main aim of the government is to support tenants during a difficult period of the pandemic, so the tenants can acquire the relative financial stability which allows them to fulfill their rental obligations to landlords in the future.
Additional tenant support measures and tax incentives for property owners include:
- Suspension for two months (in January and February) of the obligation to pay 70% of the rent for private companies and self-employed persons, whose activities are completely suspended because of the order of the Minister of Health. 30% of the monthly rent need to be paid on time as the rest 70% can be be repaid by February 2022.
- Suspension of obligations to pay rent payments to government and public organizations by private tenants for January and February 2021, as well as extension of the period of tax credits for property owners if they voluntarily reduce their rent from January to March 2021.
- Extension of the tax incentive period for owners leasing real estate to legal entities or individuals if they voluntarily reduce their rent from January to March 2021.
- Providing property owners with a tax incentive of 50% of the amount of the discount provided to the tenant, if the incentive is made for six months (maximum) during 2021, and if its amount is 30-50% of the rent.
- A 50% discount on the Special Defense Contribution, which is charged on gross rental income from January 1, 2021 to March 31, 2021 if the reduction is 30-50% of the monthly rent.
The Cyprus government has urged property owners to understand their tenants who were affected by the coronavirus pandemic, use the advantages of the new program to support the viability of the companies from which they receive income and help the country's economy to recover.