The Cyprus Government seems determined to introduce measures to encourage better land use in urban areas.
Over the next few weeks the Finance Ministry is expected to finalise proposals for the development of around 10,000 unused building plots in the cities, which are designed to ‘encourage’ their owners to release them for housing development.
It’s understood that the proposals will affect the owners of approximately 3,500 plots in Nicosia, 3,000 in Limassol and a similar number in the other cities.
It is believed that one of the incentives to be offered to land owners will be to increase building ratios, thereby allowing more housing to be built on the same area of land.
But if owners allow their plots to remain undeveloped, they will be penalised by the imposition of higher property taxes. If the Ministry’s recommendations are implemented, the owner of a plot of land valued at CYP 800,000 will pay an annual tax of CYP 2,000 rather than the CYP 80 they pay today, if they allow the plot to remain undeveloped for 5 years.
