Up to €100,000 for Construction and Renovation: Cyprus Expands Housing Programs

Residents of mountainous areas and settlements along the buffer zone in the Republic of Cyprus can now receive up to €100,000 in government support for house construction or renovation.

The announcement was made by Minister of Interior Constantinos Ioannou.

The maximum amount is reached by combining:

• up to €70,000 from the Ministry of Interior (housing subsidies);
• up to €30,000 from the Ministry of Energy for energy efficiency improvements.

Previously, these grants could not be combined; this is now permitted for the first time.

Applications will be accepted from March 2, 2026, to December 31, 2027.

Increased Subsidies for Rural and Buffer Zone Areas

From 2019 to 2025, 2,892 applications were submitted under the programs for mountain and border areas, with 2,027 approved totaling approximately €77 million.

Conditions have now been improved:

• maximum grant increased by €5,000;
• income limits raised by €5,000;
• large families receive an additional €5,000;
• displaced persons receive +20% on the standard subsidy;
• continuous residency requirements for Cypriot citizens have been abolished.

"Renovate-Rent" Program Relaunched

The first version of the program received only 76 applications, of which 40 were approved (€1.2 million).

The conditions are now more attractive:

• subsidy increased by €5,000 per property;
• conversion of offices and commercial premises into housing is now allowed;
• the program extends to rural and buffer zone areas;
• income limits for tenants have been raised;
• permissible energy consumption norms have been increased.

Student Housing: Fewer Requirements

New rules simplify the construction of student dormitories:

• up to 10 rooms per property;
• a 5-room block can be placed on just 77 m²;
• no separate reception or storage areas required;
• parking — 1 space per 5 rooms;
• available for new or converted buildings;
• property must be within 1 km of a registered university.

State Developer and Fast-Track Licensing

The Cyprus Land Development Corporation has received €28 million in funding.

Plans for 2026 include:

• 244 affordable apartments for sale;
• 192 affordable units for rent;
• division of 135 plots in Nicosia, Larnaca, Limassol, and Paphos.

Licensing procedures have also been accelerated:

• over 2,000 house applications approved within 40 working days;
• 627 apartment building projects approved within 80 days.

This will bring over 5,500 housing units to the market approximately one year ahead of previous schedules.