Town Planning Amnesty – plan to extend and simplify

Nigel Howarth
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11

PRESIDENT of the Committee, Yiannos Lamaris, explained that in view of the fact that only 2,500 ‘Statements of Intent’ had been submitted, the Committee deemed it ‘appropriate’ to extend the deadline.

In addition to the extension, it was also proposed that the submission process be made simpler:

Under the present legislation ‘Statements of Intent’ have to be submitted together with a sworn statement made by an architect/engineer who is registered with the Cyprus Scientific and Technical Chamber (ETEK). The proposed changes, if accepted, will no longer require a sworn statement, but rather an affirmation made by the owner/buyer concerning the status of the property.

The major opposition party, DISY, agreed with the proposals and they will be put before parliament at its plenary meeting next Thursday.

Unless there are some last minute hitches, the proposals will probably be accepted.

Update – 7th October 2011

AS widely anticipated, a six month extension to the Town Planning Amnesty has been approved by parliament.

The principal changes that were agreed yesterday are:

  • The period during which ‘Statements of Intent’ may be submitted under the provisions of the Town Planning Amnesty laws has been extended to 6th April 2012.
  • The requirement that the ‘Statement of Intent’ has to be accompanied by a sworn statement made by an ETEK registered architect/engineer has been removed. In its place, the applicant is required to submit a ‘Statutory Declaration’.

We will publish further information as it becomes available.

 

Real estate revenue down 70 percent in last five years

Alexis Pantelides
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6

CONSTRUCTION sector revenue dropped by a staggering 70 per cent since 2007; the year it reached €2 billion, according to Michalis Zavos, Vice-President of the Cyprus Land and Building Developers Association.

Zavos was speaking at the 7th Land and Building Development Conference in Nicosia yesterday, which his Association had jointly organised with the Royal Institution of Chartered Surveyors (RICS). The conference’s target was to inform all interested parties of the real estate market’s current situation and was also attended by Finance Minister Kikis Kazamias.

“It is no secret that the construction sector has been hit hard by the continuing global economic crisis, with an ever-crippling demand for property showing no signs of recovery” said Kazamias.

“It also true that in 2007-2008 there was an excessive price increase in real estate due to high levels of demand; so it does seem that the property sector is now undergoing a period of crisis and much needed ‘correction'”  he added.

Zavos warned that the sector’s future depended not only on the global economy’s rate of recovery, but perhaps more importantly on the sector’s ability to address the various challenges it faces.

“We have presented the Finance Ministry and all political parties with several suggestions targeting the decrease of property prices, in order to help Cypriot consumers, and especially young couples to acquire properties” he said.

“This would trigger an influx of new capital from Cypriots and foreign investors” he said.

The Association is suggesting the immediate removal of property transfer charges in cases where VAT is paid, and the adoption of an urban planning amnesty on investment for repatriated capital; provided it is then invested in the local property market.

Other suggestions include the modernisation of the legislation concerning International Trusts, so as to model other European countries, with the hope that this would subsequently encourage investment in the Cypriot real estate market. Another proposal would provide the deduction of real estate development loans from the same value used to calculate the corresponding property tax.

The Association also stressed the importance of providing specialised incentives for new major developments such as marinas and proposed a twenty percent increase on the building coefficient for routine projects starting in 2012.

Kazamias vowed to push forward the adoption of several of these measures in order to stimulate the sector and pledged that a thorough study would be conducted to evaluate taxation of property on the whole.

“Through its 2009 fiscal policy, the state took measures to help this sector and although the financial barriers for aiding the economy are still restricted, we vow to do all we can to help the sector” he concluded.

Source: Department of Lands and Surveys

Minister gives Oroklini theme park the green light

Nigel Howarth
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1

LAST Monday, a meeting was held between the Interior Minister, Neoclis Sylikiotis, and a joint delegation of representatives from the company set up by local land owners and representatives of the Russian investors concerning the proposed theme park in the Oroklini area.

At the meeting, the Minister gave the project the green light and issued instructions for the exchange of some 500 donums (approximately 67 hectares) of state-owned land in the area needed for the construction of the park. The state land will be exchanged for land of equivalent value owned by individuals involved in the company formed by local land owners.

In addition, instructions were given to change the zoning of the area to accommodate the development and the necessary changes to the infrastructure.

At an estimated cost of €800 million, the project is planned to occupy an area of nearly 1,000 donums (approximately 135 hectares) and will include a waterpark, a luxury hotel and many restaurants.

Know Before You Go Campaign at A Place in the Sun

Nigel Howarth
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12

THE ‘Know Before You Go Campaign’ will be at the ‘A Place in The Sun Live’ show at the NEC in Birmingham between 30 September and 2 October.

Zoe Woodward and Stephen Jones from the British Consulates in Cyprus and Spain will be taking questions from the public. They’ll be on panel sessions throughout the three days, and available the rest of the time at the Know Before You Go stand (stand number B13)

Brits remain one of the biggest ex pat groups overseas, with over 5.6 million living abroad. Research is key to planning to move or buy property abroad. Property laws in other countries often differ from the UK, and it is also important to ensure you plan for the long term, for example pension arrangements.

Zoe and Stephen regularly hear from British nationals who have got into difficulty as a result of not researching fully before signing that contract.

The Foreign Office has produced advice on before you go, when you arrive and buying property to help get you started.

Drug dealing Briton jailed over property fraud

Patrick Dewhurst
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2
Gary Robb
Robb at AGA’s notorious Amaranta Valley project

INFAMOUS British property developer, Gary Robb yesterday received a 10-month jail sentence for “serious offences” in relation to the exploitation of Greek Cypriot property in the north.

Nicosia District Court ruled that Robb has to serve his jail sentence for the 11 charges of appropriating the land, in Nicosia Central Prison, where he was led after yesterday’s court proceedings concluded.

The sentences on all charges, which include development and sale of property belonging to the Republic of Cyprus and to Greek Cypriots without their consent, will run concurrently.

In passing sentence, the Court said it took into consideration the time Robb had spent in detention “according to article 26 of the EU Council framework decision 2002/584/JHA” as well as the mitigating circumstances relating to the case, such as his admission of guilt, apologies and family circumstances.

The Court described the offences committed as serious, though the sentence could have been greater, as the law provides for a two-year jail sentence and a hefty fine for such offences.

The start date for Robb’s sentence was set as August 3, 2011, when he was extradited to Cyprus by Britain, where he was serving a drugs-related sentence.

Robb was one of the managers of a Turkish Cypriot development company, called “AGA Development LTD” which aimed to build 335 luxury residences in the occupied village of Klepini, in the northern Kyrenia District.

Construction began in January 2005 and by the end of April around 85 per cent of the residencies had been sold for between £50,000 to £100,000 Cyprus Pounds. The project was never completed.

According to data from the Kyrenia District Lands Office, the affected surface area is 273,800 square metres, with 261,589 square metres belonging to Greek Cypriots, 7,550 square meters to Turkish Cypriots and the remaining 4,661 square meters being state property.

This is not the first time foreign nationals have been taken to court in relation to appropriation offences. Many foreigners, in particular British nationals, have bought property illegally in occupied Cyprus.

The Foreign and Commonwealth Office has, on many occasions, issued advice to British nationals to be aware of transactions involving the sale or purchase of land or immovable property in occupied Cyprus.

British police think that about 400 Britons collectively lost over €40 million (about 35 million British pounds) in deals with AGA Development.

Some of those were told during a 2005 property conference at Colonel Hotel in Kyrenia that they would be no legal problems with buying in the north.

Town Planning Amnesty deadline approaching

Nigel Howarth
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11

THE TOWN Planning Amnesty is a one-off opportunity enabling minor planning irregularities of buildings in Cyprus to be legalised. Those wishing to take advantage of the amnesty must apply, or reserve the right to apply, by 7th October at the very latest.

After 7th October, applicants who have reserved the right to apply by submitting a ‘Statement of Intent’ have three years to apply to the relevant Town Planning or Building Authority for a Certificate of Final Approval. This Certificate is required before the all important Title Deed for the property can be issued.

We have published more than twenty articles about the Amnesty, including the Planning Amnesty Bulletin from the Interior Ministry explaining the temporary and permanent provisions of the amended laws, lists of architects and engineers prepared to assist in making applications, penalty payments payable where the planning infringement involves overbuilding, a Town Planning Amnesty statement of intent DIY guide for those wishing to submit applications and Town Planning Amnesty explained – a presentation given by Yiannis Koutsolambros.

Although there are estimated to be around 100,000 buildings with minor planning irregularities, only some 1,800 amnesty applications have been made to date.

But now time is of the essence and those wishing to submit a ‘Statement of Intent’ need to do so without further delay.

Are there planning infringements?

FROM the emails we receive, many people do not know whether their building suffers from planning infringements or not.

In these cases, they can apply to their District Office for certified copies of their Planning/Building permits and approved drawings. They will need the number of the Planning/Building permit, a copy of their contract and proof of their identity (an ID card or passport).

The certified copies will cost €27 but they will get the actual documents relating to their property. It should then be easy for most people to see if their property was built in accordance with the permit. In Paphos, the District Office has promised to issue the documents on the same day.

Those who are unable to obtain the number of their Planning/Building permit should speak with the planning officer responsible for their area who should be able to advise and provide them with a certified copy of the documents.

Those who have difficulty in interpreting the plans should seek the assistance of an architect or engineer who will also help with submissions if needed.

(We understand that the Interior Minister wishes to extend the amnesty deadline. And as Parliament convenes every Thursday, we expect that an announcement to this effect will be made either later this week or next).

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