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Cyprus: Building Permits Decline As Project Values And Scale Rise In 2025

by THEFUTURE.TEAM

December 17, 2025

Overview Of Permit Activity In Early 2025

Statistics from the Cyprus Statistical Service reveal a 4.3% decline in the number of building permits issued between January and August 2025 compared to the previous year. A total of 4,842 permits were granted during this period, down from 5,062 in 2024, according to data published on Monday.

Increased Investment And Enhanced Project Scope

Despite the lower count, the overall value of the permits experienced a notable rise of 12.3%, while the total built-up area increased by 16.1%. Moreover, the number of residential units authorized grew by 14.6%, underscoring that while permit issuance has slowed, investment in quality and scope remains robust.

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Shifts In Permit Categories

Analysis of the permit categories indicates a widespread decline compared to the same period last year—except for permits related to residential buildings, which saw an 8.5% increase. In stark contrast, permits for road constructions plunged by 56.9%, and those for non-residential buildings fell by 41.7%, illustrating sector-specific challenges and adjustments.

Highlights Of August 2025

The month of August recorded the issuance of 647 building permits totaling €252.8 million in value, with an aggregate built-up area of 213,200 square meters. Projections based solely on August’s data suggest the construction of 1,147 new residential units.

Regulatory And Procedural Reforms

It is also significant that since July 1, 2024, responsibility for issuing building permits has transitioned from municipalities and district administrations to the Provincial Self-Government Organizations (ΕΟΑ). In addition, the entire approval process is now managed through the new integrated information system, Hippodamos, implemented across Cyprus.

This combination of declining permit numbers with rising operational scales reflects a market in transformation—where streamlined regulatory frameworks and sophisticated project planning drive substantial construction investments despite reduced permit volumes.

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Cyprus Cuts Electricity VAT To 5% As Part Of 100 Fiscal Measures

by THEFUTURE.TEAM

March 30, 2026

President Nikos Christodoulidis announced a package of 100 fiscal measures to address inflation and reduce costs for households and businesses. Measures include tax cuts and targeted support. Plan focuses on energy prices, fuel costs and consumer spending. Implementation begins in 2026.

Broad-Based Tax Cuts And Immediate Relief

Among the suite of initiatives is a reduction in fuel tax, widely recognized as an effective short-term relief strategy. However, an even more significant policy step involves transferring savings directly to consumers via improved fiscal mechanisms. This approach ensures that the benefits of tax reductions are channelled efficiently to end users, reinforcing trust and stability in the market.

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Strategic VAT Reduction On Electricity

VAT on electricity will be reduced to 5% from May 1, 2026, to March 31, 2027. The rate was previously lowered from 19% to 9%. Electricity pricing remains regulated by the Public Electricity Company. Structure limits the impact of market-driven price increases.

Ensuring Market Stability And Consumer Protection

Alongside tax cuts, the government is monitoring potential increases in consumer costs, including fuel and products that may be considered for zero VAT. President Nikos Christodoulidis said market oversight will be strengthened, with measures aimed at preventing unjustified price increases.

Electricity price is about 26 cents per kilowatt-hour, down 14% compared to the same period in 2025. According to the Public Electricity Company, price increases in the coming months are expected to remain below 5%. Measures are designed to limit inflation pressures and support household costs. Impact will depend on market conditions and implementation.