The president of Cyprus has rejected a bill to reduce rental rates

The president of Cyprus has rejected a bill to reduce rental rates

The President Nikos Anastasiadis has asked parliament to revise the law on temporary reduction of rental rates for commercial and residential property by 20%, declaring it unconstitutional, ee24.com reports with reference to the Cyprus News.

Recall that the law developed two weeks ago was designed to reduce the rents of real estate for a year - until October 31, 2014, and was to affect all the contracts entered prior to October 2012. The law was rejected by the president on the basis of Article 26 of the Cyprus Constitution, which states that everyone has the right to contract freely and decide on the amount by which the agreement is concluded.

Now that Parliament has some time out to review the law and or send the corrected version to the president, or cancel it altogether.

According to the letter of still not adopted law, the rents for residential property up to €300 would be reduced by 15% (up to €45). Rates above €300 would be reduced by 20%, up to €120.

Rental rates for commercial real estate of up to €600 would be reduced by 15% (up to €90). For rates of €600 to €2,000 would be a decline of 20%, but not more than €250. Rates above €2,000 would be reduced by 20%, but not more than €400.

Earlier ee24.com wrote about who is lobbying for the law and to whom it is not profitable.