[PIO] Extension of the Planning Incentives Plan for the Recovery of Business Activity in Cyprus

In order to boost business activity and the recovery of the economy, the Council of Ministers today approved the proposal to extend until 31 December 2024 the validity of the Urban Incentives Scheme for the Recovery of Entrepreneurship in Cyprus. The Plan mainly concerns tourism developments or other developments for business purposes in areas all over Cyprus. From the first implementation of the Plan in May 2013 until the end of November 2023, a total of 1,044 planning applications for developments in all Districts were submitted, of which 845 applications were approved.

The decision to extend the validity of the Plan for an additional year was taken after evaluating the positive results of the incentives in encouraging entrepreneurial activity in Cyprus. Furthermore, it was considered appropriate that the Plan be strengthened by incorporating amendments in line with the new objectives and policies promoted by the Government concerning, inter alia, the housing sector, the simplification of the development licensing procedure, etc.

In particular, the following amendments have been introduced in the Plan:

[*]increase of the compensation depending on the type/category of development (addition to tourism development, new tourism development or other new development) from 10%-20% of the value of the excess building factor, to 50% for all cases without exception and to 70% in the case of developments outside designated Incentive Areas. [*]payment of the amount prior to the issuance of a building permit, to a Special Fund to be created to support the State's housing policy instead of to a Special Fund of the CRA, using a special form. [*]submission of the application for a building permit within two years from the granting of the planning permit, for all developments without exception, in order to provide the necessary time to prepare the technical studies and create conditions of stability for investors. [*]the obligation to submit all required studies and consultations with the relevant departments/authorities at the time of submitting the planning application.

The revised Plan is expected to contribute to the State's efforts to attract interest from foreign investors for large-scale and strategic developments and, by extension, to strengthen the local economy.

(MKY)
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