Cabinet extends period of urban planning incentives

Aiming at strengthening business activity and at the recovery of the economy, the Council of Ministers has approved a proposal to extend until December 31, 2024 a Plan for the Provision of Urban Development Incentives for the Recovery of Entrepreneurship in Cyprus.

The Plan mainly concerns tourist developments or other developments for business purposes in areas throughout Cyprus.

During the  implementation of the Plan from May 2013 until the end of November 2023, a total of 1,044 urban development applications were submitted in all districts, of which 845 applications were approved.

The decision to extend the the implementation of the Plan was taken after evaluating the positive results of the incentives in encouraging business activity in Cyprus so far.

Minister of the Interior, Constantinos Ioannou, stated that it was decided that the Plan should be strengthened, by incorporating amendments in line with new goals and policies promoted by the Government and concerning, among others, the housing sector, the simplification of the development licensing process etc.

Particularly, amendments were introduced to increase compensation depending on the type/category of development from 10%-20%, to exceed the building factor to 50% for all developments and to 70% for cases of developments outside the defined areas for the application of the incentives.

In addition, an amendment was introduced for the payment of the amount before issuing a building permit, to a Special Fund that will be created to strengthen the state's housing policy using a special form and for submitting the application for a building permit within two years from granting the planning permit, for all developments without exception, in order to provide the required time to prepare the technical studies and create conditions of stability for the investors.

There is also an obligation to submit all the required studies and consultations with the relevant Departments/Authorities when submitting the urban planning application.

The Interior Minister said that the revised Plan is expected to contribute to the state's effort to attract interest from foreign investors for large-scale and strategically important developments and, by extension, to strengthening the country's economy.

Replying to a question, Ioannou said that no legislative regulation is needed for these two decisions and that as of Thursday someone can submit an application and benefit from them.