Short – term rentals in Cyprus must take into account the interests of property owners, tourists and locals. With the growing popularity of platforms such as Airbnb and Booking.com , Cyprus is gradually seeing the introduction of regulations for this sector.
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Short-term rentals in Cyprus: current situation and features
Short Term Rentals ( STR ) have become a popular investment model for property owners, providing alternative residential properties for tourists at affordable prices. Cyprus is ideal for this market due to several factors:
- Attractiveness for digital nomads: Many professionals working remotely choose Cyprus for short-term residence.
- Changes in tourist preferences. Most tourists prefer to rent private apartments or houses rather than traditional hotels.
- Growing interest in investment. Many investors invest in real estate to receive stable rental income.
The growing popularity of STR has led to a need for legislation that takes into account the interests of landlords, the tourism sector and local communities.
Legislation for short term rentals in Cyprus
In 2020, the Tourism Facilities Regulation Law (No. 9( I )/2020) came into force in Cyprus. Now, every landlord offering short-term rentals is required to register with the Ministry of Tourism. This law regulates accommodation and obliges owners to comply with safety standards, such as the presence of smoke detectors and fire extinguishers, and ensures the payment of taxes, including VAT and local fees.
Under the law, each property must have a unique registration number ( UIN ), which must be indicated on online platforms. This has become a mandatory requirement for posting ads on sites where, otherwise, funds are not paid to landlords. Platforms are required to provide the state with data on the number and amount of transactions for tax purposes.
Problems in the residential rental market in Cyprus
Although changes in laws have allowed the short-term rental market to be regulated, issues remain regarding the affordability of residential property for locals. In Limassol, for example, rental prices have reached historic highs, making housing less affordable for locals. This situation requires additional measures to balance the interests of all parties.
Experience of European countries in regulating STR
Many European countries already have well-established systems for regulating short-term rentals:
- Paris has limited the length of a primary residence lease to 90 days per year. Exceeding this limit is punishable by fines of up to €50,000.
- Amsterdam has introduced a rental limit of up to 60 days per year and a tourist tax, which allows it to control the market.
- In Berlin, the rental period for secondary residences has been limited to 90 days, while the rental of primary residential premises is not limited but requires permission from the district office.
- Barcelona plans to completely ban short-term rentals by 2029, gradually stopping issuing licenses.
- In Rome, the government is more lenient: renting three or more properties requires registration and payment of business taxes, but less strict conditions apply to owners with up to three properties.
