Twenty-eight private schools across Cyprus have applied to expand or develop their facilities under a new urban planning incentive scheme introduced by the interior ministry.

Ten applications have been approved, three rejected, and 15 remain under review, according to ministry data.

The scheme, approved by the cabinet in March 2025 and overseen by Interior Minister Constantinos Iouannou, allows schools to increase building rates, reduce minimum open space and sports area requirements, and purchase limited parking spaces.

In return, contributions go to a special fund managed by the Cyprus land development corporation (Koag) to support affordable housing.

Nine schools are directly benefiting from the incentives, with three already granted approval.

Two used the scheme to reduce open space and sports area requirements, while a third exceeded the building coefficient and paid 20 per cent of the excess, equivalent to 669 square metres.

Payments are collected when building permits are issued and directed to the Koag special fund, which currently supports projects in Limassol and Strovolos.

Limassol leads with 13 applications, followed by Paphos with six, Nicosia with five and Larnaca with four.

No applications were submitted from Famagusta.

The scheme aims to strengthen existing schools and encourage new units to meet rising demand, including increased enrolments from foreign students following recent geopolitical developments.

Over the past five years, private education has expanded in preschool and primary levels, with private pre-receptions rising from 170 to more than 190, and primary schools from roughly 30 to over 40.

Secondary schools have focused on expanding facilities rather than creating new institutions.

Approximately 13 per cent of primary and more than 20 per cent of secondary students now attend private schools.

The increase in foreign students has played a key role, with numbers more than doubling over the past decade.

In private primary schools, foreign enrolments rose from about 1,900 to more than 4,500, while in secondary schools they increased from around 1,100 to over 4,200.

Higher demand from foreign families has contributed to waiting lists and added pressure for school expansions.

Tuition fees range from €3,000 to €10,000 annually for private primary schools, rising to €15,000 to €17,000 for English-speaking or international schools in Nicosia and Limassol.

Additional costs include registration, books, uniforms, technological equipment and transport.

The incentive scheme allows schools to reduce required open space and sports areas by 25 per cent with education ministry consent, reflecting limited land availability.

Extensions can include limited staff parking or purchase of parking spaces without affecting neighbourhood amenities.

Compensation rates are set at 20 per cent of the excess, lower than the 70 per cent applied under the general planning incentives scheme.

Fast-track procedures require departments to complete full application assessments within four months, coordinated by the town planning and housing department.

The planning authority director has managed all educational institution applications since July 1, 2024.

The scheme remains in effect until March 12, 2026, and applies exclusively to developments in the education sector.

Koag director-general Eleni Symeonidou affirmed that contributions from planning incentives are earmarked for affordable housing.

The income is intended to fund further projects across Cyprus, with transparency ensured through audits and submissions to the House of Representatives.