The Central Body for Equal Burden Distribution (Establishment, Purposes, Competences and Other Related Matters)

The Central Body for Equal Burden Distribution (Establishment, Purposes, Competences and Other Related Matters) Short title

  1. The Central Equal Burden Distribution Body (Establishment, Purposes, Powers and Other Related Matters) Laws of 1989, 1998 and 1999 shall be referred to together as the Central Equal Burden Distribution Body (Establishment, Purposes, Powers and Other Related Matters) Laws of 1989 to 1999.

141/1989
Interpretation

  1. In this Law, unless the context otherwise requires:

“immovable property” has the meaning assigned to this term by section 2 of the Immovable Property (Occupation, Registration and Valuation) Law;

“Reviewing Authority” means the Authority established under article 11;

“general assessment value” has the meaning assigned to this term by article 2 of the Immovable Property (Occupation, Registration and Valuation) Law;

“Central Body for Equal Distribution of Burdens” or in short “Central Body” means the Body established under article 3, the establishment of which was provided for by the Establishment of a Central Body for the Equal Distribution of Burdens Arising from the Turkish Invasion and its Consequences Law of 1988;

“Grant Scheme” means the Grant Scheme for Existing Apartment Buildings in Government Settlements for Displaced Persons which was approved on April 7 , 2023 by the Council of Ministers, by decision no. 94.640 .

“Council” means the Council of the Central Body for Equal Distribution of Burdens established under article 6;

“Minister” means the Minister of Finance.

141/1989172(I)/202258(I)/2025
Establishment of a Central Agency
3.-(1) A legal entity under public law is hereby established, called the “Central Body for Equal Burden Distribution”.

(2) The Central Body is under the supervision of the State and is managed by the Council.

141/1989
Purposes and responsibilities of the Central Body
4.-(1) The primary objectives and responsibilities of the Central Body, with related powers and obligations, are the following:

(a) To undertake actions to achieve the equitable distribution of the burdens resulting from the Turkish invasion and occupation and the restoration, as far as possible, of pre-war solvency in accordance with the occupied property of each person, based on a specific long-term plan to be determined by the Central Agency in cooperation with other competent public services, taking into account the revenues of the Central Agency in relation to the budgetary capabilities of the State and the economy in general;

(b) to provide financial or other sponsorship or financial support to legally entitled persons, provided that the legal conditions for this are met, as specified in subsection (2):

It is understood that, for the purposes of providing the above financial support, “beneficiary” means the owner of immovable property that is inaccessible or whose economic exploitation is practically or legally impossible as a result of the Turkish invasion of 20 July 1974:

It is further understood that the Central Body for Equal Burden Distribution keeps accounts for the amounts of money received or spent in the context of providing the above financial support.

(c) to recommend the adoption of the necessary legislative or other measures to achieve the objectives;

(d) to submit specific suggestions regarding its relations with other public services, competent in matters of displaced persons and those affected by the Turkish invasion and occupation, but in particular to indicate the public services that must assist it in the exercise of its responsibilities in accordance with this Law;

(e) to prepare and submit for approval the Regulations necessary for the implementation of this Law . and

(f) regardless of the provisions of this Law and the Regulations issued thereunder, may grant financial assistance or other financial support to a legally entitled person, for the purposes of loss of use and enjoyment of his property as a result of the Turkish invasion.

(2) For the purposes of securing the necessary resources to grant the financial support provided for in paragraph (b) of subsection (1)-

(a) in the event of a transfer by sale of immovable property, for which a general assessment value has been determined by the Department of Lands and Surveys, the seller shall pay, upon the transfer of the immovable property, a fee equal to a percentage of 0.40% of the sale price of the property in question; and

(b) in the event of a transfer by sale of shares of a company, which is not listed on any recognized Stock Exchange and which directly or indirectly owns immovable property for which a general assessment value has been determined by the Department of Lands and Surveys, the seller shall pay, upon transfer of the shares, a fee equal to 0.40% of the last assessed value of the said immovable property by the Department of Lands and Surveys, which is proportional to the company shares transferred by sale:

It is understood that the person responsible for the collection of the fee imposed, in accordance with the provisions of this subsection, is the Tax Commissioner, who issues the relevant payment certificate required upon the transfer of immovable property or upon the transfer of shares of a company, which directly or indirectly owns immovable property:

It is further understood that, in the context of loan restructuring, when a transfer of real estate or a transfer of shares of a company, which directly or indirectly owns real estate, is required, the fee specified in paragraphs (a) and (b) shall not be imposed on the amount of the sale price or the assessed value, as the case may be, which is used for the reduction or repayment of non-performing loans from 22 February 2021:

It is further understood that, in the event of a company reorganization, when a transfer of immovable property or a transfer of shares of a company, which directly or indirectly owns immovable property, is required, the fee specified in paragraphs (a) and (b) shall not be imposed on the amount of the sale price or the assessed value, as the case may be:

It is further provided that, in cases where a purchase and sale document of immovable property has been filed with the Department of Lands and Surveys or a share transfer form with a transfer date has been filed with the Registrar of Companies and Intellectual Property before the date of entry into force of the Central Body for Equal Burden Distribution (Establishment, Purposes, Powers and Other Related Matters) (Amendment) Law of 2021, the fee shall not be imposed upon the transfer of immovable property for the purposes of executing the said document, as provided for in paragraphs (a) and (b) of this subsection, in relation to the amount of the sale price:

It is further understood that, in the event of a disposal of immovable property by a Beneficiary to the Republic of Cyprus or to a private developer which takes place within the framework of the implementation of the Grants Scheme, the fee provided for in paragraph (a) shall not be imposed on the amount of the sale price of immovable property and for the purposes of this reservation, the term “Beneficiary” means a person who participates in the Grants Scheme.

(3) For the purposes of this article, the Tax Commissioner has, mutatis mutandis, all the powers, responsibilities and obligations, including the imposition of administrative fines and/or other administrative sanctions and/or additional fees, under the provisions of the Tax Assessment and Collection Law, the Tax Collection Law and the Capital Gains Tax Law, to exercise the duties assigned to him, as well as to resolve any issues that may arise, under the provisions of this Law and the Regulations and decisions issued thereunder, within the scope of his competence.

(4) For the purposes of this section-

(a) the term “restructuring” has the meaning assigned to that term by section (2) of the Capital Gains Tax Law; and

(b) the term “reorganization” has the meaning assigned to this term by article 30 of the Income Tax Law and articles 198 to 200 of the Companies Law.

141/198912(I)/202192(I)/2022172(I)/20221(I)/202458(I)/2025
Taking legal measures to collect fees and/or administrative fines and/or administrative sanctions
4A. In the event of failure to pay the fee payable by the Tax Commissioner under this Law, upon the transfer of immovable property or the transfer by virtue of the sale of company shares, which took place from 22 February 2021 or any other administrative fines and/or other administrative sanctions, the Tax Commissioner shall take judicial measures and collect any amount due as a civil debt owed to the Republic.

172(I)/2022
State supervision
5.-(1) The supervision of the Central Body is assigned to the Minister and is exercised in accordance with the provisions of this Law and the Regulations issued thereunder.

(2) The Council must provide the Minister with any information requested regarding the Central Body, its operation and activities, which the Minister deems necessary for the exercise of state supervision over the Central Body under this Law.

141/1989
Council Recommendation

  1. A Council is established, called the “Council of the Central Body for Equal Distribution of Burdens”, which is assigned the administration of the Central Body and the responsibility for the implementation of its policy.

141/1989
Council Responsibilities
7.-(1) The Council oversees the activities of the Central Body and has full authority to administer and manage its property, in accordance with the provisions of this Law and the Regulations issued thereunder.

(2) The Council shall in particular:

(a) Represents the Central Body, through its president, before judicial and other public authorities;

(b) recommends the adoption of legislative and other measures necessary to achieve the objectives of the Central Body, particularly with regard to the revenues necessary to achieve its objectives and its operation;

(c) examines applications for financial or other sponsorship and decides on them, in accordance with the provisions of this Law and the Regulations issued thereunder;

(d) ensures the maintenance of accounts, the preparation of the Report, Balance Sheet and Budget and submits them for review and approval to the Council of Ministers and the House of Representatives;

(e) enters into, with the approval of the Council of Ministers, loans to meet its financial needs;

(f) invests, with the approval of the Minister, any surpluses of the Central Body; and

(g) decides on the leasing of all or part of the movable or immovable property of the Central Body, the granting through plans of loans or guarantees for loans granted by financial institutions and the terms and conditions thereof, as well as the acceptance of any inheritance, bequest or donation; and

(h) is generally responsible for any action that, according to this Law or the Regulations issued thereunder, is appropriate to the purposes and responsibilities of the Central Body.

(3)(a) Without prejudice to the general supervisory competence of the Council under subsection (1) of this article, it may at any time, following a unanimous decision, delegate, under such conditions as it deems appropriate to determine, the exercise of any of its competences either to the Chairman of the Council, or to the Director, or to any committee formed for this purpose by its members;

(b) The Director or other officers of the Equal Burden Distribution Body may be present at the committee, without the right to vote;

(c) the assignment of any power under this subsection may, at any time, by a decision of the present members of the Council taken by majority vote, be revoked.

141/1989163(I)/2000
Council Composition
8.-(1) The Council shall consist of a President and twelve members appointed for a four-year term by the Council of Ministers upon a proposal from the Minister and after complying with the provisions of subsection (2).

(2) The President and members of the Council are appointed as follows:

(a) Seven senior officials, representatives of Ministries or Independent Services;

(b) five representatives of owners of Turkish-occupied properties and affected and displaced businessmen, designated as follows:

(i) Two from the Pancyprian Refugee Committee;

(ii) two from the Association of Owners of Turkish-Occupied Properties in Cyprus; and

(iii) one from the Pancyprian Association of Affected and Displaced Entrepreneurs.

(c) A person of recognized experience and value in public affairs who shall act as President of the Council.

(3) In the event of the absence of the President of the Council or any other temporary impediment, he shall be replaced by the member selected for this purpose by the Council.

(4) A vacancy in the Council, for any reason, does not affect the legal status, nor the validity of the decisions or acts of the Council, provided that the number of remaining members is not less than the required quorum for its meetings.

141/1989169(I)/2003156(I)/2005
Council meetings
9.-(1) The meetings of the Council are convened by its chairman.

(2) The chairman shall convene the Council in session whenever he deems it necessary, but shall convene a session if requested in writing by at least two members, who shall also determine the issues to be discussed. A session shall be convened at least once a month.

(3) The invitation to a meeting shall be in writing and shall be addressed to the members of the Council, at least seven days before the date set for the meeting. Exceptionally, in extraordinary and justified cases, a meeting of the Council shall be convened by an invitation served on the members twenty-four hours before the date set for the meeting.

(4) The meetings of the Council are presided over by the chairman, who ensures that minutes are kept and signs them.

(5) Seven members present at the meeting shall constitute a quorum. Decisions shall be taken by majority vote and in the event of a tie, the vote of the chairman shall prevail.

(6) Subject to the above provisions and the Regulations issued under this Law, the Council freely decides on the manner in which its work is conducted and the procedure before it.

(7) During the meetings of the Council, the Director may be present and express an opinion, without the right to vote, unless the Council, in its absolute discretion, decides otherwise in a specific case.

141/1989163(I)/2000
Remuneration of Council members

  1. The chairman and the other members of the Council are paid the salary determined by the Council of Ministers.

141/1989
Director and other staff
11.-(1) The general management of the operations of the Central Body shall be entrusted to the Director. The Director shall be appointed, subject to the other relevant provisions of the Central Body for Equal Burden Distribution (Conditions of Employment and Service of Employees) Regulations of 1995 and the Central Body for Equal Burden Distribution (Service Schemes) Regulations of 1995, exclusively on a contract basis for a period of five years, or for such shorter period as not to exceed the retirement age limit specified for that position.

(2) The Director is assisted in his work by other employees who will either be seconded from other public services or will be hired in the service of the Central Body following approval by the Council of Ministers.

(3) The Director and other employees of the Central Body are appointed by the Council, which determines the qualifications necessary for appointment and the other terms of service, while the establishment and operation of a Staff Welfare Fund are determined by regulations issued pursuant to article 16.

141/1989254(I)/2004164(I)/2023
Establishment of a Review Authority
12.-(1) A Review Authority is hereby established, competent to examine hierarchical appeals against decisions of the Council, pursuant to article 15.

(2) The Review Authority is composed of the chairman and two other members, appointed by the Council of Ministers for a four-year term.

141/1989169(I)/2003
Sessions of the Review Authority
13.-(1) The meetings of the Review Authority are convened by the chairman who presides over them, ensures that minutes are kept and signs the minutes.

(2) The Chairman of the Authority shall draw up the agenda and ensure that it is communicated to the members at least two days before the date set for the meeting. Exceptionally, in extraordinary and justified cases, the agenda may be circulated among the members immediately before the meeting.

(3) Two members present at the meeting constitute a quorum.

(4) The decisions of the Review Authority are taken by majority vote, however, in the event of a tie, the vote of the person presiding over the meeting prevails.

(5) After the above provisions and the Regulations issued under this Law have been complied with, the Review Authority shall decide freely regarding the manner in which its work is conducted and the procedure before it.

141/1989
Remuneration of members of the Review Authority

  1. The chairman and the other members of the Review Authority shall be paid the salary determined by the Council of Ministers.

141/1989
Hierarchical appeal
15.-(1) An appeal may be lodged before the Review Authority against the decisions of the Council on applications for financial or other sponsorship.

(2) The appeal shall be filed within thirty days from the notification of the Council’s decision to the interested party.

(3) The appeal pursuant to the provisions of this article shall be in writing, shall set out the reasons on which it is based and shall be addressed to the president of the Review Authority.

(4) The Reviewing Authority shall examine the appeal filed before it with all possible diligence and, after hearing the interested parties or giving them the opportunity to present their views, shall decide on the appeal.

141/1989
Issuance of Regulations
16.-(1) The Council shall prepare and submit, through the Minister, to the Council of Ministers for approval Regulations to regulate any matter which, according to this Law, requires or is amenable to determination.

(2) Without prejudice to the generality of subsection (1), regulations made under this section may provide for all or any of the following matters:

(a) For the creation and administration of a plan called the Pre-War Solvency Restoration Plan for Owners of Occupied or Inaccessible Real Estate;

(b) for the determination of the beneficiaries under the scheme provided for in paragraph (a), the beneficiaries to whom priority is given in the examination of their applications by the Central Body, as well as any restrictions and/or obstacles to the participation of a person in the said scheme;

(c) for the provision of loans in relation to-

(i) studies of up to one hundred and five thousand euros (€105,000);

(ii) assistance to newly formed couples of up to seventeen thousand euros (€17,000);

(iii) medical care of up to eighty-five thousand euros (€85,000);

(iv) business premises or professional activity or expansion of an amount up to seventy thousand euros (€70,000);

(v) purchase, construction, extension of a building, creation of a field or construction of infrastructure works on an existing field and equipment of clubs, organizations and associations of persons for an amount of up to one hundred thousand euros (€100,000) for equipment and an amount of up to one hundred thousand euros (€100,000) for building facilities;

(vi) purchase of household appliances with or without kitchen renovation, for an amount of three thousand euros (€3,000) up to an amount of ten thousand euros (€10,000); and

(vii) energy upgrading in existing residences up to the amount of fifteen thousand euros (€15,000); and

(d) for the ability of the Central Body to examine applications submitted within twelve (12) months from the date of issuance of a loan through financial institutions;

(e) for the imposition of terms, conditions, limitations or reservations in any of the cases of paragraphs (b) and (c) of this subsection;

(f) for the regulation of any matter requiring regulation under this Law;

(g) for the purposes of regulating the framework for the provision of the financial support provided for in paragraph (b) of article 4, as well as for the regulation of any matter which requires or is amenable to determination; and

(h) for any matter concerning the welfare and/or welfare and/or the establishment and operation of the Staff Welfare Fund.

(3) The Regulations prepared under subsection (1) and approved by the Council of Ministers shall be submitted to the House of Representatives, which shall have the power to approve, amend or reject them within a period of sixty days from the submission. If the House approves the Regulations with or without amendment or the period of sixty days passes without action, the Regulations shall be published in the official gazette of the Republic and shall enter into force from the day of their publication.

141/198952(I)/20115(I)/201912(I)/2021164(I)/202360(I)/2024
Exemption of beneficiaries from payment of fees, stamps, etc.

  1. Beneficiaries based on the respective plans or programs implemented by the Central Body are exempted in relation to these plans or programs from the payment of-

(a) Any stamp duty payable under any stamp duty law for the time being in force, for the purposes of mortgaging their occupied and/or inaccessible immovable property,

(b) any mortgage fee of the Land Registry pursuant to any law in force at any time regarding the payment of mortgage fees of the Land Registry for the purposes of mortgaging their occupied and/or inaccessible immovable property.

141/1989
Conclusion of contracts by the Central Agency
18.-(1) Contracts by or on behalf of the Central Body shall be drawn up and concluded legally and bindingly for the Central Body, provided that they are made in writing and bear the seal of the Central Body and the signatures of the President and two of any members of the Council authorized for this purpose by the Council.

(2) The provisions of this article do not affect or affect the validity of any contract concluded on behalf of the Central Body, before the date of entry into force of this article.

141/1989
Establishment of committees
19.-(1) The Council may from time to time establish from its members or from other persons possessing special knowledge or experience, special or other committees with such number of members as the Council may decide for any purpose which, in the opinion of the Council, is more effectively served by a committee:

It is understood that a member of the Pancyprian Refugee Union or the Turkish-Occupied Property Association or the Pancyprian Association of Injured and Displaced Businessmen is also appointed to each committee.

(2) The Council may from time to time, subject to the provisions of subsection (1), vary the number or composition of any committee, dismiss any members or appoint new members, as well as proceed to fill vacancies in any such committee.

(3) The acts, decisions and proceedings of any such committee shall always be subject to the approval of the Council.

(4) The Council shall otherwise regulate, by its decision, the procedure for the meetings of these committees.

141/1989
Note
3 of Law No. 70(I)/98 Entry into force of this Law
The force of this Law is deemed to have begun on July 21, 1995.

Note
4 of Law 169(I)/2003Transitional provision
The term of office of the members of the Council and the Review Authority existing at the entry into force of this Law [S.S.: namely L.169(I)/2003] expires on 31 December 2003.

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