The government is adding two new tools to its housing policy, with the aim of, on the one hand, utilizing state-owned land and, on the other, creating new housing units within existing residential developments to provide housing for family members.

The Plan for the Allocation of Plots to Families provides for the transfer of state-owned plots to eligible recipients based on income, age, and other criteria, with the allocation price set at 25% of the market value of the plot. Among other things, the law establishes a specific order of priority, a deadline for building a home, and restrictions on its future sale.

Read more: State-owned plots at 25% of market value: Who is eligible and how to apply

The second Plan allows for the construction of a new, standalone residence for a family member, either on an additional floor of an existing residence, or by expanding or utilizing space within the existing building, or on the vacant land of the lot. The new unit may be up to 150 square meters, or 180 square meters under certain conditions, and a ten-year restriction on sale or transfer is in place.

Read more: With this new housing plan, you can build an additional floor

But who is eligible, how much will they pay, where do these programs apply, and what obligations do beneficiaries undertake?

Below are detailed questions and answers regarding the two new housing measures.

Questions and Answers on the Land Plot Program

1. Who is eligible for the Program?

Eligible beneficiaries are Cypriot citizens who meet all of the following criteria:

(a) They constitute a family, i.e., a married couple with children, a married couple without children, or a single-parent family. (Single individuals are not eligible under this Program.)

(b) They must not have reached the age of 45 at the time of submitting their application.

(c) Be permanent residents of the community within whose administrative boundaries the plots of land are located, or permanent residents of a community located at a distance of fifteen (15) kilometers from the boundaries of the Community in which the plots of land are located.

(d)       They must not have a residence registered in their name, nor any plot or parcel of land registered in their name or in the name of the parents of either spouse or the children of the couple, in a designated residential zoneor in an area where the construction of a residence is permitted under the urban planning policy in effect at the time the Plan was approved by the Council of Ministers.

(e) Neither they nor their parents may have sold any real estate within a period of less than three years prior to the submission of the application.

(f) The annual gross family income must not exceed the following amounts, as applicable:

Family Composition	Income Criteria (€)
Couple and Single-Parent Family	up to 45,000
Family of 3	up to 50,000
Family of 4	up to 55,000
Family of 5 or more	up to 65,000

2. What are the priority criteria for beneficiaries?

Priority for the allocation of a plot of land will be given based on the applicant’s place of residence, in the following order:

(a) Native Resident: A natural person who is a native of the Community and permanently resides there.

(b) Displaced person: A displaced person who resides permanently in the Community.

(c) Internal expatriate: A natural person who is native to the Community in which the plots of land are located, had permanent residence in the Community, left it, settled in areas controlled by the Republic of Cyprus, and wishes to return to the Community for the purpose of permanent residence.

(d) Repatriated Person/Expatriate: A natural person who, at least 3 years prior to the date of approval of this Plan, following at least 10 years of permanent and continuous residence abroad, has returned and settled for permanent and continuous residence in the Republic of Cyprus, in the community where they wish to acquire the plot of land.

(e) Resident of a neighboring community: A natural person who permanently resides in a community located at a distance of 15 kilometers or less from the boundaries of the community in which the plots are located.

In the case of eligible applicants who are tied based on the order of priority determined by their place of residence, their applications will be ranked in the following order of priority:

• Large Families, i.e., families with four or more children
• Families, other than large families
• Single-Parent Families
• Couples

3. What are the beneficiaries of the Program required to pay?

The sale price of the plot to be subdivided is set at 25% of the market value of the plot as determined after subdivision. The sale price of the plot to be subdivided does not include the costs associated with the subdivision itself—such as infrastructure projects, including roads, water and electricity lines, etc. The value of the land will not include the area allocated for public open spaces and the public road network. 

4. What are the sizes of the lot and the residence?

The area of the plots to be subdivided will range from approximately 325 square meters to approximately 371 square meters. On lots allocated under this Plan, the construction of a residence with a total usable floor area exceeding 150 square meters will not be permitted. (Uncovered patios, sheds, and auxiliary spaces will not be taken into account, unless their combined area exceeds 50 square meters.)

5. How will it be determined who receives a plot of land when there are more applicants than available plots?

Applicants are evaluated based on the Plan’s criteria. Eligible recipients are ranked according to the order of priority established by the Plan. An appeals process is also provided for, to ensure the right to a review of both rejections and rankings. Once the lists are finalized, the plots are allocated in order of priority, and when the number of interested parties exceeds the number of available plots, the plots are allocated by lottery.

6. Why are at least 10 interested families required for a new subdivision to take place? What about a small community that has only 5 or 6 interested families?

The creation of a new subdivision of state-owned land involves procedures, infrastructure, and significant public costs. Therefore, a minimum level of actual demand must be demonstrated so that the government’s investment is reasonable and sustainable. The threshold of ten families serves as an objective indicator of this demand.

7. What are “Unallocated Plots”?

These are state-owned plots of land that resulted from subdivisions carried out in the past and which have remained unallocated. A key objective of the new Plan is precisely to put existing state-owned property to use rather than allowing it to remain unused.

8. Will there be new subdivisions of state-owned land?

The Plan is not limited to existing unallocated plots. It allows for the creation of new plots through the subdivision of state-owned land, provided that specific conditions regarding the suitability of the land, cost, urban planning potential for development, the preservation of sufficient state-owned land, and the existence of genuine demand.

9. In which communities will plots be subdivided?

In rural communities, plots will be allocated, but priority will be given to communities with specific characteristics, such as large tracts of Turkish Cypriot properties, the overall land area being affected by Protection Zones, unwanted developments occurring within the Community’s administrative boundaries, or reduced availability of private land for residential development in the Community, and so on.

It should be noted that communities that have been incorporated into municipalities as part of the local government reform retain the right to submit an application for the subdivision and allocation, within their community boundaries, under this Plan.

10. How much time does a person have to build their home?

The Plan stipulates that construction of the residence must be completed within three years of the signing of the relevant Agreement. The relevant District Administration may approve an extension of this period for an additional year, provided it deems this justified. The goal is to ensure that plots of land are actually used to meet housing needs and that state-owned land is not tied up without being put to use.

11. What happens if someone acquires a plot of land and does not build on it within three or four years?

The Plan sets forth specific obligations and consequences in the event of noncompliance. In such a case, the Beneficiary must return or transfer the plot to the Republic. Alternatively, if the Republic so chooses, instead of returning the plot, the Beneficiary must pay the Republic the market value of the plot, as calculated by the Land Registry, minus the amount already paid under the Plan. The basic principle is that state-owned land is granted for a specific purpose—the construction of a residence for personal occupancy—and not merely for the acquisition of an asset.

12. Can someone acquire the lot, build on it, and then sell the residence?

The Plan prohibits the transfer of the plot by the beneficiary to any person until the construction of the residence is completed and, subsequently, does not allow the sale of the residence until 5 years have elapsed from the date of its completion.

13. How many plots are currently available, and in which communities?

There are approximately 500 plots available from existing subdivisions, distributed as follows across the districts with reference to representative communities:

• Nicosia: over 40 (Potamia, Lybia, Mammarí, Agrokipia)
• Limassol: over 100 (Kalo Chorio, Arakapas, Gerasa, Kantou, Episkopi, Ypsonas)
• Larnaca: over 140 (Xylotymbou, Kornos, Alaminos, Anafotia, Kivissili, Klaudia, Xylofagou, Zygi)
• Paphos: over 200 (Pentalia, Kouklia, Holetria, Statos-Agios Fotios, Acheleia)
• Famagusta: around 30 (mainly Frenaros)

14. When do applications open, and where should they be submitted?

Upon the announcement of the Plan, District Governors will be able to proceed as soon as possible regarding the existing available subdivided plots, in accordance with the procedure set forth in the Plan:

• Notice by the District Governor, on a case-by-case basis for each Community where subdivided plots are available, regarding the opportunity for interested parties to submit applications.
• Place of publication of the notice: in print at the offices of the relevant District Administration and online on the websites of the District Administration and the Ministry of the Interior.
• Submission of Applications: using the designated form with the required certificates/documents, by the deadline specified in the District Governor’s Notice, at the offices of the relevant District Administration.

15. With housing prices and construction costs at current levels, do you really believe that granting a plot of land solves a family’s housing problem?

No single measure can, on its own, solve the housing problem. The cost of land, however, constitutes a significant portion of the total cost of acquiring a home. With this specific Plan, we are essentially eliminating or reducing this cost for the families who will benefit. The Plan is not presented as the sole solution to the housing issue, but as yet another targeted measure within the broader framework of the Government’s housing policy.

New Plan for Granting the Right to Build a New Home

No.	QUESTION	CLARIFICATION
1	What does the new Housing Plan cover?	The new Housing Plan concerns the construction of a new residential unit to meet the housing needs of the applicant’s family members: (i) on an upper floor of an existing approved residence (ii) either within the structure of the existing approved residence (e.g., part of a covered parking area), or outside the structure as an addition to the existing residence; (iii) within the open space of the lot/plot where such a possibility exists.
2	In which areas does the new Housing Plan apply?	The new Housing Plan applies to plots of land where the construction of a residence is permitted under the Development Plans. However, the Plan does not apply: (i) to listed buildings and Areas of Special Character (P.E.X.); (ii) to residential units in existing apartment buildings and to residences that are part of existing unified residential developments. (iii) to parcels located outside Development Boundaries, as defined in the applicable Development Plans. (iv) on parcels/lots located within Tourist Zones, as defined in the applicable Development Plans. (v) environmentally sensitive areas, protected landscapes, nature conservation areas, and Controlled Areas under the Antiquities Law. (vi) for the regularization of unauthorized structures existing as of the date of publication of this Decision.
3	What is considered an existing residence?	An existing residence is defined as a structure that exists legally as of the date of publication of this new Housing Plan, possesses all necessary permits (zoning permit and building permit), and all obligations imposed by the relevant conditions (road network, green space, etc.) have been fulfilled.
4	How long is the new Housing Plan valid?	The new Housing Plan is valid until December 31, 2027, and therefore applies to all applications submitted to the competent Urban Planning Authority by that date.
5	Which Urban Planning Authority is responsible for reviewing the urban planning application?	The competent Urban Planning Authority, pursuant to the current Urban Planning and Spatial Planning (Delegation of Powers) (K.D.P. 307/2024), is the Head of the Urban Planning Licensing Division of the respective District Local Government Organizations.
6	How many square meters am I entitled to build?	The buildable area of the new residential unit resulting from the implementation of this Plan shall be up to 150 square meters. As an exception, for lots/plots with a net area of at least 1,000 square meters, the buildable area of the new residential unit may be increased up to 180 square meters, depending on the needs of the family members
7	What happens when it is not possible to designate the necessary parking spaces for the new residential unit?	If it is not possible to designate the necessary parking spaces for the new residential unit, the option is available to activate the mechanism for purchasing the required parking spaces for a purchase priceof €2,000, or a lower amount, if so specified in a relevant Order of the Minister of the Interior.
8	When should I submit an application to obtain a building permit after the urban planning permit has been granted?	Once the urban planning permit has been obtained, an application must be submitted to the competent authority for the issuance of a building permit no later than one(1) year from the date the applicant is notified of the granting of the zoning permit; otherwise, the zoning permit will become inactive
9	How long will the urban planning permit remain valid, and can it be extended?	The urban planning permit will be valid for no more than three (3) years, and it will not be subject to any extension, unless the work is actively underway and, specifically, at a stage of implementation that renders the authorized development irreversible.
10	Will I be able to transfer the new residence to my children or sell it?	The zoning permit will include a provision requiring that a restrictive covenant be recorded on the Title Deed, stipulating that the new residential unit may not be sold or transferred (except in the case of inheritance) for a period of 10 years. Therefore, it cannot be sold, but it may be transferred to the applicant’s children by way of inheritance.
11	If I have already benefited from another Incentive Program, will I be able to take advantage of the new Housing Program as well?	This option is available in cases where the use of another incentive or program did not involve the granting of an additional building coefficient.
12	In the case of co-ownership, is it possible to take advantage of the new Housing Plan without the co-owner’s signature?	In such cases, the provisions of Article 90 of the Town and Country Planning Law may be invoked, and with the consent of the Director of Town Planning, consideration of the application.

See what Patrina Taramidou, Director of the Housing Policy Directorate, had to say regarding the Ministry of the Interior’s two new plans: