Ownership is one of the fundamental rights of every citizen. However, there are instances where the State may remove or restrict this right through the process of compulsory expropriation. What does this mean in practice? What are the rights of property owners, and what are the obligations of the State and its administrative bodies?
The right to property is enshrined in Article 17 of the Universal Declaration of Human Rights, Article 1 of the First Additional Protocol to the European Convention on Human Rights, and Article 17 of the Charter of Fundamental Rights of the European Union. In the Cypriot legal system, the right to property is safeguarded and protected by Article 23 of the Constitution, which ensures that anyone has the right to acquire, own, hold, enjoy, or dispose of any property, whether movable or immovable.
However, the right to property is not absolute. Under certain conditions, it may be deprived entirely or subject to simple restrictions. A mere restriction of the right may occur either by requisition, according to Article 23.8 of the Constitution, for temporary possession of the property, or under the authority of a law in accordance with Article 23.3 of the Constitution.
Article 23.4 of the Constitution of the Republic of Cyprus sets out the legal framework and mechanism by which permanent deprivation of property can lawfully occur, through the process of compulsory expropriation. For expropriation to take place, resulting in the permanent deprivation of any movable or immovable property or rights thereto, certain strict conditions must be met, as this constitutes a serious interference with property rights.
Who Has the Authority to Carry Out Expropriation in Cyprus?
Firstly, expropriation may only be carried out by certain entities, namely the Republic of Cyprus through the competent ministries, municipal authorities, or public law entities such as district local authorities, the Cyprus Electricity Authority, the Cyprus Telecommunications Authority, and so forth. Therefore, the power of expropriation can only be exercised by specific administrative bodies with executive and decision-making authority, and cannot be arbitrarily exercised by private individuals or unauthorized entities.
Secondly, there must be specific legislation that provides the authority and process for compulsory expropriation. Such legislation must be enacted under Article 23 of the Constitution. In the Cypriot legal system, the relevant law is the Compulsory Acquisition Law (Law No. 15/1962), as amended. This law defines the procedural steps to be followed in any expropriation and sets out the rights and obligations of the parties involved.
A third key condition for the legality of compulsory expropriation is the existence of a public benefit purpose. This purpose must be clear and connected to the fulfillment of public needs such as, for example, environmental protection, construction of public roads, schools, hospitals, and other public works. Expropriation, which entails the permanent loss of property, is considered a particularly burdensome measure. For this reason, the intended public purpose must be sufficiently serious to outweigh the private benefit associated with ownership. The burden of proof for the substantive conditions of expropriation lies with the competent administrative authority issuing the expropriation order (the expropriating authority), which must demonstrate that the interference with property is not only necessary but also proportionate, meaning there is no less severe alternative to achieve the same result.
What Legal Justification Is Required for Expropriation Orders?
Furthermore, the expropriating authority must issue a reasoned decision specifying the purpose of the expropriation. This reasoning is necessary not only for transparency but also to enable effective judicial review of the decision’s legality. If the affected owner or holder of rights over immovable property chooses to challenge the expropriation order before the competent Administrative Court, the Court will examine whether the stated purpose is indeed of public benefit and whether all procedural and substantive safeguards provided by the law and Constitution have been observed.
Finally, a prerequisite for the completion of expropriation is the payment of fair and reasonable compensation to the property owner. This compensation must be paid in cash and in advance, i.e., before the transfer of the expropriated right. This provision ensures the financial restoration of the affected individual and serves as essential compensation for the deprivation of property.
Compulsory expropriation, as an exceptional deviation from the general principle of property protection, must be applied only under the strict conditions set by the Constitution and the relevant law, respecting the principles of necessity, proportionality, and fair compensation. Any deviation from these criteria may constitute a violation of the owner’s constitutional and human rights.
The process of compulsory expropriation begins with the notification of intent to expropriate by the expropriating authority. This notification is published in the Third Annex of the Official Gazette of the Republic of Cyprus to inform the public and trigger the relevant procedures. A copy of the notification is also delivered to each interested party whose rights are affected by the upcoming expropriation. The notification, in addition to adequately justifying the planned expropriation, must clearly state the right of interested parties to submit an objection within thirty days from the date of service.
Can Property Owners Object to the Expropriation Notification?
The submitted objection, which constitutes a form of hierarchical appeal, allows the interested party to set out the reasons why they believe the expropriation should not proceed. The expropriating authority is obliged to examine the objection and respond with reasons, either accepting the arguments and terminating the expropriation process or rejecting the objection and continuing the process. It is worth noting that both the notification of expropriation and the decision to reject the objection are preparatory administrative acts that are not enforceable and therefore cannot be directly challenged in court through the Administrative Court.
If the objection is rejected, the expropriating authority proceeds with issuing the Expropriation Order. This order is the final and enforceable administrative act that completes the expropriation process and is the only act that can be challenged in court, pursuant to Article 146 of the Constitution. The legality of the Expropriation Order depends, among other things, on its publication in the Official Gazette of the Republic of Cyprus, which is an essential condition for its validity and enforceability, as publication is a constitutive element of the order’s lawful issuance. Conversely, serving the Expropriation Order to affected owners is not mandatory. This means that any interested party wishing to challenge the Order bears the responsibility of monitoring the relevant publications in the Official Gazette to be informed of its content and act accordingly.
How Can the Final Expropriation Order Be Challenged in Court?
From the issuance and publication of the expropriation order, the affected individual essentially has three options. First, they can challenge the legality and validity of the order by filing an appeal to the Administrative Court within the stipulated seventy-five-day period from the date of publication. According to case law, besides the owner of the affected property, a tenant of the property may also challenge the expropriation order since the expropriation directly affects their legal right to occupy the rented property.
Second, they can accept the order and the financial compensation offered by the expropriating authority, thereby settling the matter. Third, if they accept the expropriation but disagree with the amount of compensation, they can accept it with a reservation of rights and file, under Article 9 of Law 15/1962, a reference to the District Court in the district where the expropriated property or right is located. The District Court, after hearing evidence—primarily from expert appraisers—will determine whether the offered compensation is fair or whether the owner is entitled to a higher amount.
Additionally, Article 23.5 of the Constitution and Article 15 of Law 15/1962 provide for a crucial measure of administrative oversight in cases where the purpose of the expropriation is not fulfilled within three years of the property transfer. In such cases, the expropriating authority must offer the property back to the original owner, with a refund of the compensation paid. This measure prevents abusive expropriations where property is transferred but not ultimately used for the declared purpose. Using expropriated property for a purpose other than the one stated in the notification is legally impermissible and constitutes a violation of the principle of legality.
How Do Cypriot Courts Interpret and Apply Expropriation Laws?
Case law from Cypriot courts has repeatedly stressed that expropriation must be applied as an exceptional measure and interpreted strictly. Numerous judgments have annulled expropriation orders due to violations of the law and the Constitution. Special emphasis has also been placed on the need for compensation to be paid within a reasonable time, as unjustified delays may constitute violations of the state’s constitutional and European obligations.
In practice today, significant problems often arise in applying the law. Property owners face arbitrary or inadequately justified expropriation orders, questionable property valuations, or even situations where expropriation is never implemented but is not formally revoked. These problems increase legal uncertainty and highlight the urgent need for timely legal guidance.
Why Is Timely Legal Support Critical in Expropriation Cases?
It is therefore crucial for any affected person facing expropriation issues to know their rights and seek legal support promptly. Property protection is not just theoretical; it requires knowledge and exercising the rights granted by the Constitution. Proper and timely legal guidance can make the difference between mere compliance and real protection of a citizen’s interests.
Our office possesses specialized knowledge and experience in cases of compulsory expropriation and other property rights restrictions, ensuring the protection of owners’ rights at both administrative and judicial levels. We are at your disposal for any questions or cases related to immovable property, offering legal guidance with responsibility, transparency, and consistency.