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Saturday, February 21, 2026
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Cyprus Government Intensifies Audit of Abandoned Turkish Cypriot Properties Amidst Reform Drive

**NICOSIA** – The government of the Republic of Cyprus is currently undertaking a comprehensive audit of abandoned Turkish Cypriot properties situated within government-controlled territories, a move heralded as a pivotal stride towards more equitable and rational management of these assets. This rigorous examination aims to scrutinise rental agreements for any instances of unauthorised use and to ensure adherence to recently enacted legislation designed to rectify historical disparities faced by Greek Cypriot displaced persons.

Interior Minister Constantinos Ioannou confirmed the ongoing nature of the audit on Thursday, underscoring its significance in the government's broader strategy. The legislative framework governing the utilisation of these properties underwent substantial revision last year. Previously, the allocation of such properties was largely at the discretion of the interior minister. However, the revised laws have introduced a structured system, employing a defined set of criteria and a points-based methodology for property distribution. This shift is intended to dismantle the previous ad hoc approach and foster a more transparent and equitable distribution process, thereby addressing long-standing inequalities among Greek Cypriot individuals who rely on these lands.

The audit's findings thus far reveal a considerable number of irregularities. Over 4,000 rental contracts pertaining to Turkish Cypriot properties have been meticulously reviewed for potential misuse. Earlier reports had indicated the termination of more than 300 such agreements due to contraventions. The current inspection extends to contracts negotiated by local authorities. A review of 275 municipal contracts unearthed violations in 31 instances. While some municipalities have since rectified their contractual arrangements, with 13 cases brought into compliance, others have received warning letters. In five instances, municipal contracts were consequently rescinded.

Similarly, the examination of contracts entered into by village councils has also yielded significant results. Out of 589 contracts scrutinised, auditors identified 47 violations of contractual terms. While a dozen of these cases have been resolved through compliance following the audit, a substantial number of village councils, specifically 32, have been issued with warning letters. Furthermore, three village council contracts have been terminated as a direct consequence of the audit's findings.

The rationale behind this comprehensive overhaul and audit is multifaceted. Beyond merely identifying and rectifying instances of misuse, the government is committed to establishing a framework for the rational administration of these properties, which collectively constitute approximately 10.14 percent of the Republic's total landmass. The previous system, laden with ministerial discretion, had inadvertently fostered a sense of inequity among the displaced population who were allocated these lands. The new allocation mechanism, with its objective criteria, seeks to level the playing field and ensure that resources are distributed justly.

Financially, the implications are also substantial. Revenues generated from the lease of these Turkish Cypriot properties are projected to reach an estimated €6.56 million this year. This influx of funds is expected to contribute to public coffers and potentially be reinvested in initiatives aimed at supporting the displaced communities. The ongoing audit, therefore, represents not only a regulatory exercise but also a crucial step towards optimising the economic and social utility of these significant land holdings within the Republic of Cyprus.

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