Cyprus property update on the 2026 housing scheme for an additional family home on an existing residence

New Cyprus Housing Scheme for Property Owners: An Additional Family Home on an Existing Plot

Sep 14

2 min read

Cyprus has introduced a significant new housing measure for owners of existing residential properties. Announced by the Ministry of Interior on 9 September 2026, the scheme is intended to facilitate the creation of an additional home for family members on an existing residential property.

What the new scheme may allow

Subject to the scheme’s conditions, a qualifying owner of an existing lawful residence may be able to create one additional home for a child or grandchild even where the normal building density of the plot has already been exhausted. The additional residence may be created by adding a floor, extending the existing building, adapting suitable space within it or developing an appropriate unused part of the same plot.

How large can the additional residence be?

The additional residence may have a buildable area of up to 150 sq.m. In qualifying larger plots, the maximum may increase to 180 sq.m., subject to the applicable conditions and the individual planning assessment.

The existing property must be lawful

The existing residence must have the necessary planning and building permissions and must comply with the approved development. The new scheme is not a route for legalising unauthorised additions or irregularities that already existed when the scheme came into effect.

Important exclusions and restrictions

The scheme does not apply to every residential property. Important exclusions include existing apartment units in apartment buildings, listed buildings, certain special-character or protected areas, tourist zones and land outside the development boundary. A 10-year restriction on sale or transfer of the new residence also applies, subject to the inheritance exception.

Why this matters for property owners

The key feature is that this is not simply an ordinary application to use remaining building density. In a qualifying case, the scheme may create real additional residential potential even where the ordinary density entitlement of the plot has already been fully used. For families wishing to house adult children or grandchildren without acquiring a separate plot, this can materially alter the development potential of an existing home.

Before relying on the scheme

Each property should be reviewed individually. A proper assessment should cover the title, planning zone, development boundary, existing planning and building permits, any unauthorised works, ownership structure, structural feasibility and the proposed form of the additional residence.

Source framework: Ministry of Interior housing announcement and related Town Planning guidance, September 2026.

This publication is for general information only and does not constitute legal, planning, engineering or tax advice. Each property must be assessed on its individual legal, planning and technical circumstances.