Greek Cypriot refugees with extensive property holdings in the north have been caught in the net of the Tax Department after selling their properties to the Immovable Property Commission (IPC) based in the north.
According to information obtained by Politis, the Tax Department, using various tools and sources of information, identified cases of refugees who received compensation amounting to millions of euros from the IPC and proceeded to tax the relevant income. The compensation payment by the IPC of the is carried out through banking institutions.
According to the information guide for Greek Cypriot refugees, published on the website of a law firm in the north that submits applications to the commission in cooperation with Greek Cypriot lawyers, compensation is paid into a bank account of the applicant’s choice. As a result, the supervisory authority - that is, the Central Bank of Cyprus - becomes aware of the transaction, unless the funds are deposited into an account held at a foreign bank.
The same law firm - whose website also provides a Greek Cypriot mobile phone number for enquiries about the application process - states that the amount of compensation is calculated on the basis of the current market value of the property, as well as the loss of use since 1974.
Today, it takes several years for the IPC to complete the examination and assessment of compensation claims. The commission was established in the north following a ruling by the European Court of Human Rights.
€674 million in compensation
According to figures published on the IPC’s website, by last week - specifically, as of 21 November 2025 - a total of 8,428 applications had been submitted by Greek Cypriot refugees, of which 2,144 have been reviewed and completed. The commission states that compensation totalling 591,200,892 pounds sterling, or €673,969,016, has been awarded to Greek Cypriot applicants. In addition, it has issued decisions for exchange and compensation in two cases.
It decided on restitution - meaning return of Greek Cypriot property - in five cases, and restitution plus compensation in eight cases. In one case, it issued a decision for restitution following the comprehensive settlement of the Cyprus problem, and in another it decided on partial restitution.
The most recent case widely reported a few months ago involved the payment of €9 million to the heirs of a refugee from Famagusta.
Checkpoint pick-up
Several law firms in the north, in cooperation with firms in the government-controlled areas, handle the submission of applications to the IPC. As stated on their websites, for Greek Cypriots who cannot visit their offices - either because they have never crossed to the north or because they do not drive, etc. - the firms offer to collect them from the checkpoints.
Loan fraud
Refugees who sell their properties to the IPC do not inform the Land Registry of the Republic of Cyprus. Consequently, according to Land Registry records, they still appear as the legal owners of those properties. This means they can use the title deeds in their possession to secure low-interest loans through the Central Agency for the Equal Distribution of Burdens, effectively mortgaging a property they have already sold.
For refugee applicants, the amounts approved by the Agency may reach up to 80% of the value of their property in the north or inaccessible property, or up to €85,000 - whichever amount is lower. Exceptions apply to applications for housing loans for the purchase of a first residence, where the amount may reach €130,000, as well as applications for professional activity or student loans, where the maximum amount guaranteed by the Agency may reach €105,000.
If they are found…
What happens in cases where a refugee sells their property in the north and simultaneously secures a low-interest loan from the Central Agency using the title deeds they still hold?
The Regulations governing the establishment and operation of the Central Agency stipulate that, if such a case is detected, the refugee is obliged to return the money received as a loan. Specifically, the Regulations provide that:
“A person who has alienated, by sale, the property in the north or inaccessible immovable property that was used for the purpose of interest-rate subsidy - either before the approval of the subsidy or during the period of subsidy - is obliged to immediately return to the Central Agency the amount of the subsidy, which is calculated from the date on which the said property was alienated. Provided that the provisions of this Regulation are included in the contract that the beneficiary is required to sign with the Central Agency.”
No compensation for mortgaged property
It should be noted that the IPC does not compensate immovable property in the north that is mortgaged. For this reason, applications from refugees seeking the release of parcels of land in the north - in order to sell them - remain pending before the Central Agency.
The National Solidarity Fund
It should also be noted that a draft law submitted by DISY for the financial support of property owners in the north — through the creation of a National Fund for Loss of Use of Properties in the north — is pending before the House Refugee Committee.
According to DISY, the creation of the Fund is expected to play a decisive role in stopping, or at least reducing, the sell-off of Greek Cypriot properties in the north via the IPC.