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23.02.2026
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23 February 2026

Audit of Turkish Cypriot property rental agreements underway in Cyprus

The government continues a large-scale audit of the use of Turkish Cypriot properties located in territories controlled by the Republic of Cyprus. This was stated by Minister of the Interior Constantinos Ioannou, emphasizing that the audit has already covered more than four thousand lease agreements.

According to the minister, the inspection is aimed at identifying violations of usage conditions and preventing abuse. It was previously reported that more than three hundred contracts could be terminated due to failure to meet obligations. As part of the inspections, special attention is being paid both to municipal agreements and to contracts concluded by village councils.

Inspection results and identified violations

During the audit, hundreds of contracts signed by local self-government authorities were examined. More than 300 agreements were terminated due to violations of terms. The inspections covered 275 contracts signed by municipalities, with non-compliance identified in 31 cases. Following the audit, in 13 cases municipalities brought the situation into compliance with agreement terms, warning letters were issued in another 13 cases, and 5 contracts were permanently terminated.

At the same time, 589 agreements concluded by village councils were reviewed. During the inspections, auditors discovered 47 violations of lease conditions. In 12 cases full correction was achieved after remarks, official warnings were issued in 32 cases, and 3 agreements were terminated.

According to experts, such a large-scale review has become one of the biggest in recent years and indicates the authorities’ intention to bring order to the management of Turkish Cypriot property.

На Кипре проходит аудит договоров аренды недвижимости турко-киприотов

New property allocation system

The minister recalled that last year amendments were introduced to legislation regulating the procedure for leasing Turkish Cypriot property. Allocation is now carried out based on clearly defined criteria and a points-based system, which eliminates the possibility of unilateral decisions by the head of the Ministry of Interior.

Earlier, Ioannou described the reform as a “decisive step” toward more rational property management. According to official data, land belonging to Turkish Cypriots accounts for more than 10% of the total area of territories under the control of the Republic of Cyprus, making its administration strategically important.

The introduction of a transparent applicant evaluation system is based on objective and measurable criteria. Financial status, family circumstances, and social factors are taken into account, which should ensure equal conditions for all applicants, primarily for Greek Cypriots who were forced to leave their homes in the past.

Economic impact and modernization of procedures

Revenue from leasing this property is forecast to reach about 6,5 million euros this year. These funds go into the state budget and are used within existing programs.

The ministry emphasized that modernization of procedures is aimed not only at increasing transparency but also at eliminating previous imbalances that caused dissatisfaction among certain groups of citizens. Strengthening oversight and digitizing processes should minimize the risk of abuse in the future and ensure more effective management of state resources.

The ongoing audit and the introduction of a new allocation model indicate the Cyprus authorities’ intention to make the management system of Turkish Cypriot property more fair, open, and aligned with modern public administration standards.

Source: cyprus-mail.com
Photos: pixabay.com, DOM

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