21.12.2023
To boost business activity and revive the economy, the Council of Ministers on Wednesday approved a proposal to extend until 31 December 2024 the Urban Development Incentive Plan for the Recovery of Enterprise in Cyprus.
The plan mainly concerns the development of tourism or other developments for business purposes in areas throughout Cyprus.
During the implementation of the Plan from May 2013 to the end of November 2023, 1,044 applications for urban planning were submitted in all districts, of which 845 applications were approved.
The decision to extend the implementation of the Plan was made after assessing the positive results of stimulating business activity in Cyprus.
Konstantinos Ioannou stated that it was decided that the plan should be strengthened by including amendments in accordance with the new goals and policies promoted by the government and relating, among others, to the housing sector, simplifying the construction licensing process, etc.
In particular, changes have been made to increase compensation depending on the type/category of development from 10%-20%, exceeding the construction coefficient to 50% for all developments and up to 70% for cases of development outside certain areas for the application of incentives.
In addition, an amendment has been made to pay the amount before the issuance of planning permission to the Special Fund, which will be created to strengthen the housing policy of the government using a special form, and to apply for building permission within two years from the date of issue of planning permission for all developments without exception, in order to provide the necessary time for the preparation of technical studies and create conditions of stability for investors.
There is also an obligation to provide all necessary research and consultation with relevant departments/authorities when submitting an urban planning application.
The revised Plan is expected to contribute to the government’s efforts to attract foreign investor interest in large-scale and strategically important developments and, as a result, strengthen the country’s economy.
In response to a question, Ioannou said that these two solutions do not require any legal regulation and that as of Thursday, someone can apply and benefit from them.
