Applications for the mortgage interest rate subsidy program opened on January 2. This initiative is aimed at mitigating the negative impact of inflation and rising interest rates on Cypriots who have taken out loans to purchase or build residential property.
The program was approved by the Council of Ministers on 11 December 2024 and is part of a large-scale package of government measures to support the population in the context of rising living costs. About €33 million has been allocated for the implementation of the initiative.
The first two days of the program saw lower than expected application rates, despite the high level of interest previously shown. Many potential participants are gathering information and preparing documents for submission.
Basic conditions of the program
The program applies to individuals who took out a mortgage from January 1, 2022 to December 31, 2023 to purchase or build their first home. Participants are offered a 2% subsidy for up to 24 months from the date of loan approval. This will compensate for 50% of the average increase in the interest rate compared to the terms at the time of concluding the loan agreement.
To participate, you must meet the following requirements:
- The loan must be valid and not exceed €400,000.
- The annual family income must not exceed €50,000.
- All tax obligations must be met by 2023.
Application Procedure
To submit an application, it is necessary to fill in a special form available on the website of the General Accounting Office of the Republic of Cyprus. Completed documents are accepted in printed form at Citizen Service Centres (KEP) or District Citizen Service Centres (KEPO) until 28 February 2025.
