The Cyprus residential property market in 2026 is characterized by a shortage of quality inventory and consistently high demand, particularly in Limassol and Nicosia. With rising prices, tenants often face unreasonable demands from landlords. Understanding the legal framework governing landlord-tenant relations is critical to protecting your budget and ensuring stable tenancy. There are two fundamentally different rental categories in Cyprus, and your protection strategy directly depends on which one your contract falls under.
Contents
- 1 Rental Categories in Cyprus: Statutory vs. Freehold Tenant
- 2 Rent Increases: Rules and Restrictions for 2026
- 3 Deposit Non-Return Issue: Step-by-Step Recovery Guide
- 4 Unlawful eviction and “peaceful possession”
- 5 Practical recommendations for concluding an agreement in 2026
- 6 FAQ: Frequently Asked Questions
Rental Categories in Cyprus: Statutory vs. Freehold Tenant
Before entering into a dispute with the landlord, you should determine the legal status of the property. Cyprus has a Rent Control Law, which divides tenants into two groups.
Statutory Tenants
This category includes tenants living in “Rent Control Areas” (RCAs) if the building was constructed before December 31, 1999. If your initial lease expires but you continue to live in the apartment and pay rent, you become a “statutory tenant.” As of 2026, such tenants enjoy the highest level of protection: they are virtually impossible to evict without compelling grounds (such as building demolition or the owner using the property for personal use), and rent increases are strictly regulated by the state.
Free Market
If the building was constructed after January 1, 2000, or is located outside the control zones, your relationship with the landlord is governed exclusively by the signed contract and Cyprus general contract law. Tenant protections are weaker here, and the extent to which termination and price adjustment clauses are spelled out in your agreement is crucial.
Rent Increases: Rules and Restrictions for 2026
The issue of rent indexation in 2026 is particularly pressing. Many owners are trying to bring prices up to market levels, ignoring the law.
Indexation for statutory tenants
According to a decision by the Cyprus Cabinet of Ministers, effective for the period 2025–2027, the maximum rent increase limit for statutory tenants is often set at 0% or an extremely low percentage (usually no more than 8–10% every two years). If your landlord demands a 20% annual rent increase, this is a direct violation of the law. A specialized Rent Control Court exists to challenge such demands.
Indexation in the free market
In a free market, a landlord has the right to increase the price only if the contract stipulates it. If the contract specifies a fixed price for two years, any demand for additional payment before the end of this period is illegal. In 2026, it is standard practice to include a clause allowing for a 5-10% price increase upon contract renewal. If such a clause is not included, you have the right to insist on maintaining the current terms until the end of the contract.
Comparative characteristics of tenant rights
| Parameter | Statutory tenant (buildings before 1999) | Open market tenant (buildings after 2000) |
| Grounds for defense | Rent Control Act | Lease agreement |
| Price increase | Every 2 years, the limit is set by law | By agreement of the parties or by the terms of the contract |
| Eviction | Only through the court for compelling reasons | According to the clauses of the termination agreement |
| Judicial body | Rent Control Court | District Court |
| notice period | At least 1 month after the court decision | Usually 1-2 months according to the contract |
Deposit Non-Return Issue: Step-by-Step Recovery Guide
A landlord’s refusal to return a security deposit is the most common cause of disputes in 2026. By law, the deposit is intended to cover damage to the property beyond normal wear and tear or to pay final utility bills.
Definition of “Fair Wear and Tear”
As of 2026, Cypriot courts firmly hold that tenants are not responsible for the natural deterioration of materials. Faded paint on the walls, minor scratches on the floor, or wear and tear on kitchen appliances after three years of use are not grounds for retaining the deposit.
Algorithm of actions when withholding funds:
- Checking the acceptance certificate: Compare the photographs taken upon move-in with the current condition. In 2026, it is recommended to conduct professional photography or video recording of the property on the day of move-out.
- Written Demand: Send a formal letter (Notice of Claim) to the landlord demanding the return of the deposit within 14 days. Indicate that if the landlord refuses, you will contact a lawyer.
- Utility bills: Provide final receipts for water, electricity (EAC), and municipal taxes. Ensure the accounts are transferred back to the owner or closed.
- Mediation: If the deposit amount is significant (e.g. over €3,000), you can engage a certified mediator for pre-trial settlement.
Unlawful eviction and “peaceful possession”
Your right to “quiet enjoyment” of your property means that your landlord has no right to enter your home without your permission, change the locks, or shut off utilities in an attempt to force you to leave. Such actions will be considered a criminal offense or a serious civil violation in 2026.
If the landlord threatens to cut off the electricity:
- Contact the police immediately to record the violation.
- Notify the Electricity Authority (EAC) that you are a legal tenant and have a valid contract.
- File an application with the court for an injunction to prevent the owner from interfering with your use of the property.
Practical recommendations for concluding an agreement in 2026
To minimize rental risks, you should insist on the following clauses being included in the contract:
- Detailed inventory list: Indicating the condition of each piece of furniture and appliances.
- Deposit refund policy: Specify a clear timeframe (e.g. 7-10 business days after check-out).
- Diplomatic Clause: Right to terminate the contract early with 2 months’ notice in case of moving from city or country.
FAQ: Frequently Asked Questions
Can a landlord keep a deposit for professional cleaning?
The landlord has the right to withhold the cleaning fee only if this was clearly stated in the contract and if you left the property in a significantly worse condition than when you moved in. If you returned the apartment in a clean condition, the demand to pay for a deep cleaning is unreasonable.
What should I do if the owner sells the apartment while I am living in it?
Selling a property does not terminate your lease. The new owner automatically assumes all of the landlord’s obligations until your lease expires. You have the right to remain in the property under the same terms. However, in 2026, buyers often demand “vacant possession,” so the landlord may offer you compensation for voluntarily leaving early.
How quickly will Cyprus courts hear rental cases in 2026?
Thanks to the judicial reform launched in 2023, case processing times have been reduced. Cases in the Rent Control Court can take between 6 and 12 months. To expedite the process, it is recommended to use the simplified procedure if the amount in dispute is small.
Does the landlord have the right to store his things in the apartment I rent?
No, unless this was agreed upon in advance and specified in the contract. You are paying for exclusive use of the entire property. If the owner uses one of the rooms or the garage for storage without your consent, you have the right to demand a proportionate reduction in rent.
Do I have to pay rent if the air conditioner in my apartment breaks and isn’t fixed?
You don’t have the right to simply stop paying rent, as this will give the landlord legal grounds for eviction. The correct course of action in 2026 is to send a formal notice demanding repairs. If there’s no response, you can pay for the repairs yourself and deduct the amount from your next rent payment, attaching all receipts and work reports, but only after consulting with a lawyer.
