Cyprus Consults on Lower Interest and Electronic Notice for Property Requisition Compensation

The Department of Lands and Surveys opened public consultation on 13 August 2026 on a bill that would amend the Requisition of Property for Public Benefit Purposes Law of 1962, Law 21/1962, the statute under which the state may requisition immovable property, and rights over it, for purposes such as archaeological excavation, defence and civil emergency. Comments close on Friday, 25 September 2026. Nothing has been enacted yet, but landowners and practitioners with pending or future requisition matters should note the direction of the reform now.

What the bill changes

The bill, titled the Requisition of Property for Public Benefit Purposes (Amendment) Law of 2026, would amend the Requisition of Property for Public Benefit Purposes Laws of 1962 to 2014, Law 21/1962 as amended by Laws 50/1966, 61/1975, 43/1986, 108/1991, 85(I)/1992, 76(I)/1996, 81(I)/1998 and 92(I)/2014.

Four changes stand out.

First, Article 2 is amended to align the definition of "immovable property" with Article 2 of the Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224, and to add a definition of "payment of compensation" covering payment or deposit into the beneficiary's own account, or deposit in a special account, or deposit with the Accountant General of the Republic. Article 3 is also amended to add archaeological excavation, and the preservation, protection, maintenance or development of ancient monuments, antiquities and the areas surrounding them, as express public purposes for which property may be requisitioned.

Second, Article 13 is amended to reduce the statutory rate of interest payable on compensation from four percent to three percent, aligning it with the rate that already applies in compulsory acquisition proceedings. The same article confirms that compensation is not subject to any tax, deduction or fee, though where the full amount is deposited with the Accountant General on behalf of the persons entitled to it, any taxes, fees or duties owed are deducted at the point of payment to those persons.

Third, where a person entitled to compensation refuses to accept it, cannot be paid because of incapacity or absence from the Republic, or has died, or where the offer of compensation cannot otherwise be made, the requisitioning authority may deposit the compensation with the Accountant General for the beneficiary's account. The interested person then has twelve months from the date of deposit to apply to the court for determination of the amount; if that period passes without an application, agreement on the amount is presumed. A person who learns of the deposit only after the twelve months have passed may apply to the court within three months of learning of it, and the court may extend the time to apply by up to six months from the date of that application.

Once twelve months pass without an application to the court, agreement on the compensation is presumed.

Fourth, Article 15 is amended to allow notice and service under the law to be carried out through electronic means, including posting on the requisitioning authority's website, in addition to the existing methods. Service by electronic means is treated as effected when the sender receives an electronic indication that the notice was received and read, and this is confirmed by the recipient. A new transitional provision in Article 19 allows pending requisition files, where compensation was offered before the new law takes effect but has not been paid because the beneficiary did not respond or for other reasons, to be closed by depositing the amount with the Accountant General under the law's deposit provisions as amended.

What this means in practice

For landowners and their advisers dealing with a live or pending requisition, the lower three percent interest rate reduces what accrues on compensation left unpaid, so early engagement with the requisitioning authority rather than allowing a file to sit matters more than it did under the four percent rate. The twelve month deadline to refer a disputed amount to court is a real limitation period: once it passes, the law presumes the offered compensation has been accepted, and the fallback for a beneficiary who finds out late, a further three months to apply for an extension of up to six months, depends on the court being satisfied it is just and reasonable to grant it, not on the beneficiary's original entitlement.

Firms should also flag the shift to electronic notice to any client with an open requisition matter, since a notice confirmed as received and read electronically will be treated as validly served and will start these time limits running, whether or not it was seen promptly. Practices advising public bodies, contractors or landowners in areas with archaeological or heritage interest should note that excavation and monument preservation are now express statutory purposes for requisition, which may bring more sites within the Department's reach. Because the consultation remains open until 25 September 2026, clients with active files have a window to make representations on the transitional provision before the rules are finalised.

Sources

• Public consultation notice, Requisition of Property for Public Benefit Purposes (Amendment) Law of 2026, Department of Lands and Surveys, relayed by the Cyprus Employers and Industrialists Federation (OEB)
• Draft bill, Requisition of Property for Public Benefit Purposes (Amendment) Law of 2026
• Explanatory memorandum, Requisition of Property for Public Benefit Purposes (Amendment) Law of 2026

This article is provided for general information purposes only and does not constitute legal advice.

Klitos Platis

Advocate, Partner

Kleanthous & Platis LLC, Nicosia · Published 20 August 2026