Key Details of the Bill

On November 21, 2024, a draft bill was submitted to Parliament, proposing the following benefits for landlords renting affordable housing:

• Three-year tax exemption on rental income from personal and corporate income taxes, as well as defense contributions.
• Enhanced capital allowances of up to 20%.

"Renovate-to-Rent" Program

This initiative falls under the Ministry of Interior’s "Renovate-to-Rent" scheme, which aims to set affordable rent at 30% below market rates. A detailed list of market rates by district, municipality, and property type will be published on the Ministry’s official website and Affordable Housing platform.

Cost to the Government:

The government estimates an annual cost of €1.75 million for these tax benefits, amounting to a total of €5.25 million over three years.

Eligibility for Tenants

To qualify for affordable housing, tenants must meet income criteria and cannot have familial ties with the landlord. Income thresholds are set as follows:
• €25,000 for single individuals
• €45,000 for couples or single-parent families
• €50,000 for families of three
• €55,000 for families of four
• €65,000 for families of five or more

Implications

This legislation aims to:
• Boost the supply of affordable housing.
• Encourage landlords to participate in the program.
• Ease the financial burden on families needing housing solutions.

Stay tuned for updates on how this initiative will shape the rental market in Cyprus.