The Scientific and Technical Chamber of Cyprus (ETEK) has proposed a new tax on properties left empty in central Nicosia for an extended period, with revenues ring-fenced for reinvestment in the centre.
The proposal forms part of a wider package of measures set out in an ETEK report on reviving the capital’s centre, published in June 2026. The report proposes the vacancy tax would apply to properties that remain inactive beyond a defined time limit, indicatively three years, and that the local authority would collect and manage the revenue under a clause requiring it to be spent on regeneration projects in the centre.
The vacancy tax sits alongside a digital registry of inactive properties, which the report says should be paired with a technical team that contacts owners directly to identify barriers to reactivation. The registry, the report says, should not function as a passive list but as an active tool, with an organised programme of communication with owners.
The report also proposes tax incentives for owners who renovate or reactivate buildings in the centre, with incentives linked to uses that strengthen mixed use, permanent residence, the creative economy and education.
A separate measure would allow Nicosia Municipality to manage or concession inactive listed buildings under public-interest terms, with a focus on cultural, social and educational uses.
To speed up reuse of empty ground floors, the report proposes a fast-track licensing procedure for change of use, small conversions and temporary uses, alongside a dedicated one-stop shop for the centre with set response times. Standardised requirements for interventions on listed buildings are also recommended, to cut delays and reduce uncertainty.
The report frames permanent residence as a central success indicator rather than a side effect. It proposes a programme of incentives aimed at young professionals, students and families, linked to tax measures, the activation of inactive buildings, fast-track licensing for change of use, and partnerships with universities and large employers.
Parking requirements for businesses in the historic centre would be revised, with municipal parking schemes giving priority to residents and short visits. The report says the aim is not a general return of private cars but targeted, managed and measurable access alongside public transport and soft mobility.
Cultural and creative uses would be supported through residencies, workshops, makerspaces and temporary-use programmes in empty buildings. Ground-floor activation through pop-ups, small cultural and commercial activities and themed routes is proposed as a way to increase dwell time in the centre and create reasons for repeat visits.
The measures stem from a Structured Democratic Dialogue workshop ETEK organised with Nicosia Municipality on 22 and 25 July 2025, attended by more than 25 representatives of public authorities and professional and social bodies. The workshop produced 103 proposals, ranked by an interpretive structural modelling method to identify which actions act as levers for others.