Dorita Yiannakou
Serious systemic problems are undermining how state land is managed and how property rights are protected, according to a new special report by the Audit Office of Cyprus examining the Department of Lands and Surveys.
The report, which reviewed activities from 2021–2023 for the department and 2022–2024 for the Nicosia District Lands Office, paints a picture of chronic dysfunction: mounting unpaid revenues, slow administrative responses, and legal inaction that together delay the collection of millions of euros owed to the state.
Auditors say the root causes include complex procedures, slow responses from public services asked to give opinions, and a lack of internal coordination. They also point to an outdated legal framework riddled with gaps, vague provisions, and no objective criteria for allocating state property, conditions that can fuel opacity and unequal treatment of applicants.
Given the department’s central role in the functioning of the state, Auditor General Andreas Papaconstantinou stressed the need for sweeping reforms, including modernized procedures, clear deadlines, and measurable performance targets.
Unpaid revenues keep climbing
Uncollected revenues reached €18.5 million nationwide in 2024, €3 million more than the previous year. About 74% of that total comes from unpaid rents for state land used for farming, industry, housing, and other purposes by private individuals, organizations, and local authorities.
Expected annual rent income is estimated at €4.2 million, yet actual collections over the past two years did not exceed €2.8 million annually. The gap has created a backlog equal to more than three years’ worth of expected revenue.
Regionally, Limassol accounts for the largest share of unpaid rents at 42%. Nicosia and Paphos fall between 20% and 30%, while Larnaca and Famagusta remain below 10%.
The problem isn’t limited to private tenants. Municipalities and communities collectively owe €4.6 million tied to contributions for expropriations linked to planning projects. Of that, €2.9 million is owed by the Limassol Municipality for debts pending since 2015.
Thousands of applications stuck...some since 1980
Weaknesses in managing state land are equally alarming. More than 7,700 lease applications remain pending, some dating back over four decades. The average processing time for new applications is eight years — far beyond the 12–18 months promised in the Citizen’s Charter.
Investigations into illegal interventions on state land also lag badly. As of Dec. 31, 2024, authorities still had 1,127 cases awaiting examination nationwide. In the Nicosia district alone, auditors found cases left unresolved for more than 15 years without meaningful action.
One example cited involves a private individual who owes €600,000 for leasing state land for industrial use between 2008 and 2017. Despite requesting termination of the contract in 2017, the case wasn’t referred to legal services until October 2020, and records show no substantial effort by authorities to recover the debt.
Outdated systems and extreme delays
The Land Information System, the department’s core digital tool, was also found lacking. Auditors say it does not provide adequate access control or a reliable audit trail, making it difficult to track changes or detect unauthorized data edits.
In extreme cases, it took 195 months, more than 16 years, to complete pending survey applications. Much of the delay stems from how private licensed surveyors are used: although they handle a large share of work, there are no firm deadlines or effective oversight. Some official files were found to have remained in private hands for decades without progress.
Boundary dispute cases show similar patterns. On average, it took about 125 months, more than 10 years, from application submission to written notification of a decision. In some instances, on-site inspections occurred six to ten years after filing, with final decisions arriving up to 15 years after survey work was completed.
Cases involving the disposal of expropriated land took an average of 90 months nationwide. Such delays, auditors warn, risk revenue losses for the state while fueling public frustration.
Call for penalties and strict timelines
The report concludes that the department operates at a pace that fails both citizens and the economy. Long-standing delays increase administrative costs and threaten public finances, the auditor general said, calling for a fundamental shift in mindset and approach.
Among the recommendations: impose penalties for illegal use of state land; create monitoring mechanisms for contract compliance, including on-site inspections; fully record and promptly resolve illegal encroachments; speed up expropriation orders; digitize forced-sale procedures; retrieve files from private surveyors; and set binding timelines with performance indicators for every process.
Without decisive reform, auditors warn, the same cycle of delays, lost revenue, and public dissatisfaction is likely to continue.
