The licensing process for development projects is being simplified and restructured

Minister of Interior Constantinos Ioannou has announced that the plan to simplify the licensing process for development projects will be expanded.

This will include changing the procedure for reviewing urban planning and building permit applications to reduce the time required for issuing permits, particularly for low-risk developments in Category A.

More specifically, a special checklist will be introduced that will be submitted by the private project designer alongside the application and other required documents. Applications will be reviewed by the Local Government Organisations within 40 working days. A planning certificate will then be issued or denied, and subsequently, a building certificate will be requested and reviewed within another 40 working days. This aims to enable construction to commence within 80 working days.

This initiative, part of a 14-month effort by the Ministry of the Interior, is part of the Nikos Christodoulides government's broader goal to improve citizen services and modernise crucial procedures.

Measures implemented so far

In October 2023, a new plan was approved with 22 measures, developed in collaboration with the Cyprus Scientific and Technical Chamber (ETEK). These measures aimed to address delays caused by the previously cumbersome and inefficient process.

Among the measures are amendments to decrees and guidelines, requiring pre-approval of consultations with relevant services and submission with applications, and a focus on completeness to prevent re-submissions.

A "fast-track" process for reviewing urban planning and building permit applications was launched. It involves self-certification by private designers, who must ensure the accuracy and completeness of applications using a detailed checklist.

Implementation of automatic isuance

The system was piloted on 2 October 2024, for Category A urban planning applications (developments of up to two housing units). Planning certificates are issued within 20 working days. If no decision is made within this period, the certificate is automatically issued on the 21st day via the "Hippodamos" system.

By January 2025, the system will extend to low-risk building permits, enabling developers to secure both urban planning and building certificates within 40 working days.

Future expansion

By March 2025, the fast-track system will include Category B developments (up to 12 housing units or apartment buildings with a maximum of 20 apartments).

On-site monitoring and new oversight mechanisms

On-site inspections will be introduced at three stages during the development to ensure compliance with permit terms, minimising past violations.

The new approach also shifts the responsibility to private designers, holding them accountable for the accuracy of submitted applications.

Improved workflow for authorities

The plan includes measures to relieve local authorities of a backlog of 5,000 pending applications submitted before 1 July of this year, allowing them to focus on larger, more complex developments.

This reform supports broader local government modernisation efforts and aims to enhance effectiveness in development licensing, ultimately benefiting Cyprus' economy and society.

Challenges and digital transition:

ETEK President Konstantinos Konstantis highlighted that the reform ensures quality checks and eliminates past inefficiencies. He emphasised that the transition to digital tools, such as the "Hippodamos" system, is vital for reducing environmental and administrative costs.

In summary, the initiative represents a major step towards modernising Cyprus' licensing process, aiming for faster, more reliable approvals while ensuring rigorous on-site monitoring and designer accountability.