The budget of the Cyprus Land Development Organization for 2021 shows a deficit of more than € 1 million, while in the total revenues of the Organization, are included € 10 million that arise as income from the naturalizations of foreign investors. It is expected to be discussed in the parliamentary Finance Committee today.
The budget, which, along with others, was submitted late to Parliament, provides for revenues of € 17,233,000 and expenditures of € 18,411,490, with the budgeted balance at the end of 2021 being estimated at € 5,927,701. According to the report accompanying the budget, the revenues of the Organization include € 10 million of revenues from the naturalization of foreign investors in Cyprus and an additional amount for the building factor. Specifically, in the mentioned budget it is noted that 100 under considered applications have been calculated that are expected to be approved and collected in 2021. For these applications an amount of € 9,950,000 and € 50,000 will be collected for the building factor.
KOAG revenues also include: € 6.4 million from receipts from the sale of houses and land, € 520 thousand from interest receivable, € 343,000 from other revenues. The expenses of the Organization for 2021 are budgeted in the amount of € 18,411,490. Of this amount: € 1,818,490 relates to staff remuneration, € 602,000 in compensation, remuneration and other benefits, € 805,200 other administrative expenses, capital expenditures are expected to amount to € 8,510.00, € 6,575,200 has been included for repayments of loans / debts, repayments of low-paid project amounts, an amount of € 100,000 has also been included for unforeseen expenses and reserve. Proceeds from the sale of houses and apartments represent the main source of income of the organization.
The sale of houses and apartments is done at prices decided by the Board of Directors and after taking into account the following factors: the housing of the middle and low income classes, ie the provision of houses and apartments at prices and conditions that are affordable in these classes. The real costs for creating housing plans (land costs, construction costs, infrastructure, financing costs). The selection of families or persons in whom a house or apartment is available is made by a subcommittee of the Council according to selection criteria approved by the Council of Ministers. These criteria are as follows: moderately paid housing plan for singles € 22,000 per year, for families without children € 40,000 per year, for families with one or two children, the annual gross family income to increase by € 4,000 for each child. For families with more than two children, the annual gross family income should increase by € 6,000 for each child.