Cyprus Mortgage-to-Rent Scheme: Over Half of Eligible Homes Without Final Approval Certificates

Parliamentary Insight: Mortgage-to-Rent Challenges

Recent discussions at the Parliamentary Finance Committee revealed that approximately 60% of homes eligible for the Mortgage-to-Rent scheme in Cyprus lack Final Approval Certificates. This shortfall raises concerns about the viability of many applications, as secured certificates are crucial for legal compliance and transferring property ownership.

The Committee debated whether KEDIPES should be exempt from obtaining these certificates for properties coming under its management—an exemption already granted to government-acquired properties. According to a Ministry of Finance representative, this could significantly boost the number of successful applications.

Legal Responsibility and Proposed Exemptions

Under current law, property owners must secure these certificates to avoid administrative or criminal liabilities. Since KEDIPES would become the legal owner, it could face regulatory repercussions without an exemption. The Ministry of Finance argues that KEDIPES, as a fully state-assigned entity, should not shoulder responsibility for missing Final Approval Certificates.

KEDIPES has assured that tenants will be protected. It plans to cover restoration costs estimated at about 15% of a property’s value—meaning a €200,000 residence could receive as much as €30,000 in necessary upgrades.

Concerns Raised by MPs

Certain MPs expressed apprehension. AKEL MP Aristos Damianou suggested the bill may be vulnerable to legal challenges, while DIKO MP Chrysis Pantelides noted that exempting KEDIPES does not exempt the properties themselves. Committee Chair Christiana Erotokritou highlighted the broader issue of unequal treatment between state agencies and private citizens, cautioning that the government would bear the responsibility for any resulting damages.

What Are Final Approval Certificates?

Final Approval Certificates confirm that a property has been built in compliance with the planning permissions and permits originally granted. After inspecting the completed construction, the planning authorities issue these certificates, which are then passed to the Land Registry along with approved plans and permits. This step paves the way for issuing official Title Deeds.

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