The Cyprus short-term rental market continues to grow rapidly. Over the past two and a half years, the number of registered properties has increased sixfold, exceeding 8,300 units. At the same time, the total number of offers is estimated at 12-13 thousand, which indicates the need to develop a more precise control system.
The economic importance of short-term rentals
According to the Cyprus Developers Association, short-term rentals have a significant positive impact on the economy and tourism sector. Tourists who choose this type of accommodation actively spend money in local cafes, restaurants, shops, entertainment centers and tourist services, thereby directly supporting the local economy. In addition, short-term rentals create additional income for citizens, especially in the context of rising prices.
Chairman of the Cyprus Developers Association, Yiannis Misirlis, noted that the experience of Barcelona, where strict restrictions on rentals via platforms are introduced, is not applicable to Cyprus. Unlike the Spanish city, Cyprus is seeking to increase the number of tourists and strengthen its competitiveness.
Registration and legal aspects
Since July 2021, registration of short-term rental properties has been mandatory. To date, 8,375 properties have been officially registered, offering almost 37 thousand beds. The leaders are the areas of Paphos and Famagusta:
- Paphos – 3,957 properties (17,802 beds),
- Famagusta – 1,702 properties (8,728 beds).
At the same time, the Ministry of Tourism continues to consider more than 1,500 applications for registration. Violations in the form of illegal renting are recorded regularly – 52 complaints have already been filed against unregistered landlords.
Despite the economic importance of the sector, hotel industry representatives point to an uneven playing field: hotels are required to comply with strict sanitary, fire safety and infrastructure standards, while short-term rentals have less stringent requirements. This creates an imbalance and increases price competition.
In addition, in a number of areas, including Limassol, the social consequences are beginning to show – rising prices for residential property and reduced availability of long-term rentals for local residents.
Prospects for regulation
A new bill is currently in parliament that would bring local rules into line with European standards. From May 2026, platforms like Airbnb and Booking.com will be required to provide data on short-term rental properties to the state.
The Cyprus Developers Association is calling for a rational regulatory framework that will ensure fair competition, tax transparency and the preservation of the sector’s positive contribution to the economy. However, experts warn that a complete ban or severe restrictions could cause serious damage to tourism, businesses and residents, especially in rural areas where short-term rentals are an important source of income.
