Interior Minister Constantinos Ioannou has announced a new housing initiative called “Renovate – Rent” aimed at increasing affordable housing supply by bringing vacant properties back into the rental market.
The scheme, which offers grants of up to €35,000 for property renovation, targets vacant residential units to be let at affordable rates to low and middle-income tenants. Property owners can apply between 15 November 2024 and 31 December 2025, whilst potential tenants can submit applications from 15 January to 31 December 2025.
The maximum grant amounts are structured according to property size:
- One-bedroom units: up to €15,000
- Two-bedroom units: up to €25,000
- Three-bedroom units: up to €35,000
After completing a four-year affordable rental period, landlords can opt to extend their participation for at least two additional years, qualifying for maintenance grants ranging from €3,000 to €5,000, depending on unit size.
To be eligible, properties must have been vacant for at least 12 months prior to 24 October 2023, or between then and 15 November 2024. Vacancy is defined as having electricity consumption below 200 kilowatt-hours annually. Properties must have been first connected to the Cyprus Electricity Authority grid at least 15 years before 24 October 2023.
Eligible tenants must meet specific income criteria, with thresholds ranging from €25,000 for single individuals to €65,000 for families of five or more.
The scheme includes tax incentives for participating landlords, including rental income exemption from income tax and defence contributions, alongside enhanced capital allowances for equipment purchases.
Properties must be equipped with basic amenities, including kitchen equipment and bathroom fixtures. Landlords are prohibited from letting to relatives up to the fourth degree of kinship, and tenants must not own property at the time of application.
The Cyprus Cyprus Land Development Corporation will monitor compliance, with provisions for temporary suspension and grant recovery in cases of non-compliance. Property owners must provide structural safety certification from a registered civil engineer after renovation works are completed.
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