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CPDA Advocates Direct State Grants for Green Home Upgrades Over Tax Exemption

Green Incentives: A Strategic Shift

The Cyprus Property Developers Association (CPDA) is urging the government to revise its approach to financing household green upgrades. Instead of the proposed €1,000 tax exemption per spouse or partner, CPDA recommends replacing it with direct state grants. According to the association, this measure would produce faster and more meaningful results in the transition toward more sustainable living environments.

Broader Access for a Sustainable Future

CPDA stresses that the subsidy should be independent of income or socio-economic criteria, cautioning that such restrictions could hinder participation and delay Cyprus’ progress toward achieving the EU’s “Fit for 55” climate targets. The association advocates for a scheme that supports the renovation of existing homes as well as new constructions built to modern environmental standards, ensuring equitable benefits for all property owners.

A Model Based on Proven International Success

Drawing on successful examples from Italy, Germany, and the Netherlands, CPDA proposes that aid be closely aligned with the actual costs of green investments, subject to a defined ceiling. This approach is intended to maintain proportionality and fairness while ensuring the efficient use of public funds. The initiative aims to invigorate both the construction and renovation sectors, delivering positive ripple effects throughout the broader Cypriot economy.

Context and Fiscal Reform

The association’s recommendations emerged during a public consultation on a major tax reform package spearheaded by the Finance Ministry. This comprehensive reform, which forms a key component of the president’s pre-election programme, is designed to foster a fair, efficient, and sustainable economic system by addressing rising fiscal pressures, widening inequality, and the need for new investments.

Ensuring Compliance and Economic Revival

In developing the reform package, the Ministry relied on an independent study by the University of Cyprus’ Economics Research Centre (CypERC) and input from international experts to ensure compliance with EU state aid rules. The package—encompassing amendments to income tax, defence contributions, capital gains, tax certification and collection, and stamp duties—is aimed at bolstering social justice, curbing tax evasion, and stimulating entrepreneurship while restoring public trust in the tax framework.

Copyright Law Struggles To Keep Up With AI Training

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.

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