Significant progress in Cyprus has been observed in the reliable and fast systems for issuing and transferring property titles and real estate rights, according to a European Court of Auditors report on EU member states’ reforms and investments under the Recovery and Resilience Mechanism.
As noted in the report, in 2019, Cyprus received country-specific recommendations to ensure reliable and rapid systems for issuing and transferring property titles and real estate rights. By 2023, the European Commission assessed the progress in implementing these recommendations as limited.
Cyprus’ Recovery and Resilience Plan included a reform to address deficiencies in the property title issuance and transfer system. This reform outlined three milestones and a target, which concerned the examination of pending cases related to the issuance of property titles, the expansion of the new policy for issuing planning and building permits, the review of the Roads and Buildings Regulation Law, and the amendment of the Sale of Immovable Property Law.
Currently, the Sale of Immovable Property Law has been amended, and the new policy for issuing planning and building permits has been approved and expanded, allowing electronic submission of applications for such permits.
In 2024, the European Commission revised its assessment upwards regarding the implementation of this specific recommendation, rating it as significant progress compared to limited progress in 2023.
Partial progress
Partial progress has been noted in the following areas:
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Enactment of legislation to simplify procedures for strategic investors regarding the acquisition of necessary permits and approvals (2023: limited progress)
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Improvement of SMEs’ access to financing (2023: partial progress)
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Ensuring adequate access to funding and liquidity, particularly for small and medium-sized enterprises (2023: partial progress)
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Promotion of private investments to boost economic recovery (2023: partial progress)
The business environment reforms completed in Cyprus under the Recovery and Resilience Mechanism include:
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One-stop digital services to streamline licensing for renewable energy projects and facilitate energy renovations in buildings with limited results
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Incentives to encourage and attract investment and talent in research and innovation with significant results
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Facilitation of strategic investments with no results
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Incentives to promote corporate mergers and acquisitions with no results
The reports on Cyprus highlight that there is no evidence of outcomes regarding the reform incentives to promote corporate mergers and acquisitions. Although the reform achieved the intended output, namely the approval of the action plan in August 2023, it has not yet produced tangible results.
Summary of challenges
While Cyprus has made noteworthy strides in modernizing property title systems, broader business environment reforms show mixed results. Several initiatives aimed at improving investment conditions, simplifying procedures for strategic investors, and supporting SMEs have achieved only partial or limited success. Some reforms, such as corporate mergers and acquisitions incentives or facilitation of strategic investments, have yet to yield measurable outcomes. These gaps highlight ongoing challenges in fully leveraging the Recovery and Resilience Mechanism to strengthen the business climate.