The Cabinet has decided to extend the validity of the Urban Incentives Scheme for the purpose of supporting the education sector until the end of 2027. The Scheme was first implemented in 2025 with the aim of encouraging development activity in the education sector.
The aim of extending the validity of the Scheme is to encourage developments in the primary and secondary education sector, as well as to accelerate their licensing, pending the re-evaluation of the Standards for Educational Institutions and the maximum permitted development factors for educational institutions in urban areas, in the context of the revision of the Local Plans of the four major urban complexes.
The decision to renew the Scheme was taken after an evaluation of the performance of its implementation so far. Specifically, in a period of one year, 30 planning applications for educational institutions were submitted nationwide, of which ten will benefit from the provisions of the Scheme.
It is recalled that the Scheme applies to applications for new schools or for additions/conversions to existing primary and secondary education institutions.
In short, it provides:
(a) For the increase in the maximum permitted building coefficient from 10% to 25% according to the area of application,
(b) The possibility of reducing the area of open spaces and sports fields by 25%, subject to obtaining the consent of the Ministry of Education, Sports and Youth,
(c) The payment of reduced compensation for the increase in the building coefficient compared to the compensation of the Urban Planning Incentives Scheme for the recovery of development activity,
(d) Linking the compensation paid under the Scheme with the Special Affordable Housing Fund of the Cyprus Land Development Organisation, and
(e) For establishing a fast-track licensing procedure, with a four-month timeframe for processing the application.
(Source: InBusinessNews)
