The Ministry of Interior of Cyprus has clarified the main conditions of the new scheme for the allocation of state-owned land plots. The programme is aimed at reducing the cost of acquiring land and supporting families who want to build a home for their own residence.
The scheme applies to approximately 500 existing unallocated plots across Cyprus. In addition, the state will be able to create new land subdivisions in communities where sufficient demand is confirmed. The official programme provides for such projects to be implemented where there are at least 10 potential beneficiary families.
Who will be eligible for a state-owned plot
The main beneficiaries of the scheme are Cypriot citizens under the age of 45 who fall into one of the following categories:
- families with children;
- couples without children;
- single-parent families.
Important! Single people without family status are not eligible to participate in the scheme.
In addition to the age requirement, applicants must permanently reside in the community where the plot is located or in a community within a radius of up to 15 km. There are also restrictions regarding property ownership. The applicant, their parents or children must not own:
- a residential house;
- a plot;
- a land plot located in a residential zone.
In addition, such property must not have been disposed of less than 3 years before the application is submitted. Particular attention is also given to household income. The maximum annual gross income is:
- a couple or single-parent family — up to €45,000;
- a family of 3 — up to €50,000;
- a family of 4 — up to €55,000;
- a family of 5 or more — up to €65,000.
These criteria correspond to the programme conditions published by the Ministry of Interior.
How much will the plot cost and what kind of house can be built
The main advantage of the scheme is that the plot is provided at a price equal to 25% of its market value. Under the presented scheme, plot sizes are approximately 325–371 m2, while the maximum permitted total usable area of the house is 150 m2.
At the same time, the official conditions clarify that the cost payable by the beneficiary includes 25% of the value of the plot as well as the costs associated with the specific subdivision, including infrastructure works such as roads and the connection or relocation of water supply and electricity networks.
Beneficiaries also have certain obligations. The house must be built within the specified period. According to the published conditions of the scheme, the initial deadline is 2 years from the date the lease-to-own agreement is signed. The District Administration may grant a 1-year extension, while in exceptional cases a further 1-year extension may be granted. However, the total construction period must not exceed 4 years. The land plot also cannot be freely resold or transferred before the programme conditions have been fulfilled. The beneficiary must use it to build their own home.
Who will receive a plot first
If the number of applicants exceeds the number of available plots, priority will be determined according to several criteria.
The applicant’s place of permanent residence is considered first. The order of priority is as follows:
- native residents of the respective community;
- displaced persons;
- internally displaced persons;
- repatriates and residents returning from abroad;
- residents of neighbouring communities within 15 km.
If applicants are equal under the territorial criterion, family composition is taken into account: priority is given to large families, followed by other families, single-parent families and couples. If, after all criteria have been applied, the number of applicants still exceeds the number of available plots, the final allocation will be made by lottery.
Where plots are already available and how to apply
Around 500 unallocated plots are located in different districts of Cyprus. According to the presented data:
- more than 40 — in Nicosia;
- more than 100 — in Limassol;
- more than 140 — in Larnaca;
- more than 200 — in Paphos;
- around 30 — in the government-controlled areas of Famagusta.
To create new plots in a specific community, demand from at least 10 families must be confirmed. This allows the state to assess the need for infrastructure investment and the feasibility of a new land subdivision. Following the official announcement of the scheme, District Administrations must publish notices concerning available plots in the respective communities. Applications must be submitted in the prescribed form, together with the required documents and supporting evidence, to the relevant District Administration within the deadlines specified in the announcement.
Thus, the new scheme is aimed primarily at young Cypriot families with low and middle incomes who want to build their own home but face high land prices. The state is using its own land resources to reduce the cost of plots to 25% of market value while at the same time encouraging residential construction in rural, mountainous, remote and other areas covered by the programme.