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Lawmakers in Cyprus are working to introduce legislation that would regulate compensation for displaced property owners who lost the use of their land in the occupied areas following the events of 1974. The effort is being led by Parliament’s Refugee Committee, which began examining the proposal in detail on Tuesday.
The initiative aims to establish a formal framework for compensating owners of property located in the northern part of the island, which they have been unable to use since the Turkish invasion. However, current funding levels suggest that the payments could be extremely small unless the system is expanded.
Limited funds mean minimal compensation
According to discussions in the committee, the money expected to finance compensation would come primarily from a 0.4% levy on property sales in government-controlled areas, generating an estimated €20-25 million per year.
Based on these figures, officials estimate that around four out of every ten property owners affected by the loss of use could receive compensation of only about €2 per month.
Members of the Refugee Committee have therefore proposed strengthening the funding mechanism. One suggested amendment would redirect unused funds from the budget of the Central Equal Distribution of Burdens Agency into a dedicated fund specifically for loss-of-use compensation.
Government and committee positions
Committee chairman Nikos Kettiros said the Ministry of Finance and the Central Equal Distribution of Burdens Agency have committed to presenting draft regulations in the coming days. These rules would define how the compensation system would operate.
The government’s preference is for payments to be administered through the agency rather than through a separate loss-of-use fund, though the exact mechanism is still under discussion.
Kettiros emphasized that the small projected payments demonstrate the need to significantly increase the resources allocated to the scheme, warning that the program would otherwise fail to provide meaningful support.
Key legal and political questions
During the committee’s detailed review of the bill, several unresolved issues emerged.
One major question is when compensation should begin to apply. Lawmakers must decide whether payments should reflect losses dating back to 1974, when many Cypriots lost access to their properties, or only from the moment the new law comes into effect. Both options carry political implications.
Another issue concerns how compensation should be calculated. Lawmakers raised the possibility that payments might vary depending on the type and use of the property, for example, whether land was used for commercial purposes such as a hotel or for agricultural use such as an orchard.
Who should receive compensation?
The committee is also considering whether eligibility should extend only to individuals or also include legal entities.
Institutions such as the Church of Cyprus and private companies own large areas of land in the occupied territories. If these entities were excluded from the compensation system, the available funds would be distributed among fewer claimants, potentially increasing payments to individual property owners.
Some of these questions will require legal opinions before final decisions can be made.
Push to pass legislation before elections
Lawmakers aim to finalize the legislation before Parliament dissolves ahead of elections scheduled for May.
Democratic Rally (DISY) MP Giorgos Karoullas said the goal is to establish a comprehensive legal framework that recognizes the losses suffered by displaced people and provides a fair form of compensation.
However, he noted that relying solely on the small property-transfer levy currently planned would produce payments too small to meaningfully support displaced property owners. Expanding the available funding, he argued, will be essential if the program is to restore a sense of justice and dignity to those affected.
