Seasonal rentals in Cyprus: what are the regulations?

Any property in Cyprus rented out short-term as self-catering accommodation – usually as a holiday let – must be registered with the authorities and have a licence. Cypriot documents often use the term ‘self-service’ accommodation to describe seasonal rentals.

If you decide to rent out your property yourself, use an agent or a travel platform such as Airbnb or Booking.com, you must make the application through the Ministry of Tourism’s web page.

The documents to be submitted by property owners are:

• Proof you own the property (title deeds)
• A recent electricity bill containing the property’s ID number
• A photocopy of your valid passport/resident’s certificate
• Property insurance policy covering fire and civil liability
• The completed application form
• The fee is currently €222 (August 2024) and the licence is renewable every 3 years.

You will also have to submit your Tax Identification Number (TIN) which is obtained through the Cyprus Tax Department and which you will have to apply for when you decide to purchase a property in Cyprus.

Cyprus has its own tax system, and understanding your obligations is essential to avoid penalties. If you are a tax resident of Cyprus, as with any income you obtain, you must declare your earnings to the tax authorities.

You are allowed to earn up to €19,500 tax-free, after this the charge is 20-35%, depending on the level of income:

It is particularly important to consult a tax professional to ensure you are paying tax on your income in the right country and avoiding double taxation. For example, if you are a UK resident and have a holiday home in Cyprus you use for seasonal rentals you may have to pay tax in the UK.

To ensure the safety and comfort of your seasonal guests there are certain property standards to be met. Offering quality accommodation will promote your reputation and repeat bookings.

• Electrical and gas equipment should be inspected regularly, and the relevant certificates issued. The utility supplier usually performs the inspections.
• The property should contain fire safety equipment – smoke detectors, fire extinguishers and fire blankets – which must be inspected regularly.
• If your property has a pool it does not have to be fenced, but this is advisable if you are marketing to families with children.
• Furniture and equipment should be in good condition and suitable for guest use.
• There should be a first-aid kit.

Safety information must be clearly displayed and include:

• The emergency telephone number
• The full address of the property
• The telephone number of the property manager

If you rent out your property to tourists you must keep it clean and well-maintained. This includes changes of linen, towels and cleaning after each guest stay (and sometimes during).

The garden, property and pool if there is one must be kept in good condition and any problems addressed immediately.

If you are considering investing in Cyprus for seasonal rentals you should budget for ongoing maintenance.

There are two types of property established for seasonal rentals in Cyprus: villas and apartments. To rent to tourists each must be easily accessible and offer a degree of privacy i.e. a villa must have a hedge or fence surrounding it.

According to the law, you are only allowed to rent out a property containing a maximum of 5 bedrooms for 10 people.

You must have a short-term rental licence before you can advertise your property. The number has to be displayed on all marketing material.

It is your responsibility to ensure the marketing of your property offers a true representation of its status. Posting misleading information about the property will only lead to complaints and damage your reputation. If you are using a property management agent always insist on approving any marketing material before it’s listed.

Whilst not currently a legal obligation in Cyprus, it is advisable to draw up a short-term tourist contract to be signed by anyone who stays in your property.

This should include the agreed price, deposit and length of stay and be signed by both parties before the holiday/short stay begins.

The contract should also include:

• Guest responsibilities – such as rubbish disposal
• Any cleaning schedule agreed upon, including pool cleaning
• Regulations regarding barbecues (which are banned during the summer in most parts of Cyprus due to the risk of wildfires)

Successfully running a Cyprus seasonal rental involves more than just advertising a breathtaking property. Understanding the legalities is essential.

A well-managed seasonal rental in Cyprus has the potential to make you a significant income on this beautiful island and offer you a holiday home or a permanent retirement property.

We work in partnership with a property agency located in Cyprus.

Whether you’re searching for an investment property, a second home, a retirement property, or you’re planning to relocate with your family, our iad Overseas property consultants can help you find your dream home in Cyprus.