Property owners in Cyprus who provide their properties for short-term rentals are facing an important regulation introduced at the beginning of 2020. According to the new law, a special license is required to rent out housing.
This change was made in connection with the increase in the number of objects rented for short-term rent to tourists. The bulk of transactions took place through the largest platforms – Airbnb and Booking.com, while a significant part of the property owners did not pay income tax on rental income.
To solve this problem, the Cypriot authorities have made appropriate changes to the Law on the regulation of the establishment and operation of hotels and places of accommodation for tourists. Now all the objects that the owners plan to lease must be entered in a single register.
Registration takes place online on the website of the Ministry of Tourism. The property must have a building permit, valid fire and natural disaster insurance, and civil liability insurance. Also, depending on the number of bedrooms, a house or apartment must have a certain number of bathrooms.
After filling out the questionnaire and submitting an application, the owners receive a license in about a month. It is issued for three years and costs €222.
Major listing platforms such as Airbnb and Booking.com now require this license number to register a property on their platforms. The platforms transmit all details of transactions to the authorities for tax purposes.
As you understand, this process is relatively simple and standard for many European countries.The license is obligatory for all property owners who are going to rent out their property for short-term rent. Therefore, it is important to familiarize yourself with the requirements of the law and follow them strictly in order to avoid fines and legal problems.
Also, when taking into account the new rules and regulations, property owners must take into account changes in the cost of rent. According to statistics, prices for long-term rentals have risen by about 50%, while prices in the short-term rental market have risen by 30%. This will certainly affect the income of property owners.
All this highlights the importance of obtaining a license for short-term rental property in Cyprus. Property owners should understand that without proper registration and compliance with the laws, they will not be able to legally rent out their property, and therefore receive income.
The process of obtaining a short term rental license in Cyprus requires property owners to take a number of steps to ensure that they comply with government requirements.
First of all, before renting out a property, owners should first obtain a registration serial number from the National Housing Registry. This can be done a couple of months before the start of the hot tourist season.
What is required for registration
- To register, you will need to fill out a special form on the website www.tourism.gov.cy, sign it and send it back in PDF format. You will need the following documents and conditions:
- Applicant’s identity card.
- Permission to build the property in question.
- Only completed projects can be registered.Property that is in the process of renovation or renovation will not be suitable.
- You can register a villa, apartment or residence.
- An application can be submitted by a natural or legal person.
- The application can be submitted by the representative of the owner, subject to the presence of a power of attorney.
- You must submit a recent invoice from the electric company EAC.
- You will also need a tax number.
- Valid property insurance must cover fire and civil liability.
- It is necessary to comply with the requirements for the layout of the premises. For example, a 3 bedroom apartment should have at least 2 bathrooms.
Particular attention should be paid to the fact that the registration process requires compliance with certain requirements and the submission of specific documents. Incomplete or incorrect submission of information may result in refusal of registration. Therefore, it is important to carefully prepare for this process to ensure that it runs smoothly and successfully.
In conclusion, even with additional costs and requirements, the new short term rental licensing legislation in Cyprus is a positive step towards transparency and regulation of the sector. This protects the interests of both property owners and tourists who want to rent accommodation in Cyprus.