Short-term renting is legal in Cyprus, but it has required formal registration with the Deputy Ministry of Tourism since July 2021 — and unlicensed operation now carries fines of up to €5,000, plus daily penalties for continued breaches.
Read this guide: Places to Buy in Cyprus: Limassol/ Paphos/ Nicosia – A Buyer’s Guide to the Right Area
Is short-term renting even legal in Cyprus?
Yes, under a specific legal framework that’s been in force since 2019, with registration mandatory since July 2021.
The relevant law is 34(I)/2019, the Regulation of the Establishment and Operation of Hotels and Tourist Accommodation Law, amended by 9(I)/2020. It’s administered by the Deputy Ministry of Tourism, which means this sits under tourism regulation, not general rental law — worth remembering when you’re researching, since a lot of general property-law guides simply don’t cover it.
What licence do you need as an individual owner?
You’ll register under the “self-catering accommodation” category — a fully furnished unit let in its entirety to tourists, not per room.
This category is built for exactly what most investors are doing: buying a single apartment or villa and letting the whole unit.
What does registration actually involve?
A formal application with a fixed set of documents, insurance, and a modest registration fee.
Registration is valid for three years, then renewable. Owners of existing properties were given a two-year window to bring everything into compliance when the rules first tightened.
- A completed application plus an affidavit
- A valid building or town-planning permit and certificate of occupancy
- A tax ID / VAT number
- Fire insurance and public liability insurance of at least €500,000
- Fire extinguishers on every floor (serviced annually), fire blankets in the kitchen, a first-aid kit, and clearly displayed emergency numbers
- A non-refundable registration fee of €222 per property
–> All the information about the Cyprus residency program is here!
Can any apartment be rented short-term, or are some buildings restricted?
There’s no national ban on renting apartments short-term, but the building itself can still restrict you.
Current law doesn’t legally require management-committee consent to convert a co-owned apartment to short-term use. That said, individual buildings often have their own internal rules that go further than national law allows for. If short-let income is the main reason for the purchase, we always recommend investors review the specific building’s bylaws before signing, not after.
It’s also worth knowing that the Deputy Ministry of Tourism floated a proposal in early 2025 to cap ownership at two short-term rental units per person or legal entity — Cyprus’s own Legal Service rejected it as not legally implementable, and no such cap is currently in force. Worth watching, not worth panicking about.
How is short-term rental income actually taxed?
As business income, not passive rental income — which changes the tax treatment meaningfully.
Tax treatment of short-term rental income
|
Item |
Current position (2026) |
|
Classification |
Business income |
|
Tax-free threshold |
€22,000 (raised under the 2026 reform) |
|
VAT registration |
Mandatory once turnover exceeds €15,600 in 12 months |
|
GESY contribution |
2.65% of net taxable income |
|
Special Defence Contribution |
Not applicable — abolished on rental income generally under the 2026 reform |
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How much can you realistically earn?
Be cautious of any number quoted to you with total confidence — reliable, government-verified occupancy data for Cyprus simply doesn’t exist publicly.
Third-party platforms publish occupancy and income estimates for Limassol and other areas, but figures vary meaningfully between providers, and none of them are officially verified. We’d rather say that clearly than hand you a single tidy percentage that sounds authoritative and isn’t. The honest approach is to get a live, property-specific yield estimate for the exact unit and area you’re considering, rather than anchoring on a generic market average.
What happens if you skip registration?
Enforcement has been tightening steadily, and the penalties are no longer symbolic.
Fines of up to €5,000, imprisonment of up to a year, and continuing daily fines of up to €200 apply to unlicensed operation. Registered properties grew from roughly 1,545 in mid-2022 to 8,375 by May 2025, and enforcement has grown alongside that — the Deputy Ministry recorded 52 formal complaints against unlicensed operators as of April 2025.
There’s also a structural change arriving that makes unregistered listings considerably riskier: from 20 May 2026, an EU regulation requires platforms like Airbnb and Booking.com to report booking and revenue data directly to Cyprus authorities. The days of an unregistered listing going unnoticed are effectively over.
Do you have any questions? Are you interested in buying property in Cyprus? Feel free to contact us here!
Licensed rental versus an unregistered listing
What you’re actually risking without a licence
|
Licensed self-catering rental |
Unregistered listing |
|
Fully legal, insured, and inspectable |
Exposed to fines up to €5,000 and daily penalties |
|
Insurance and safety standards protect guests and owner |
No liability insurance backing if something goes wrong |
|
Compliant with incoming EU platform-reporting rules from May 2026 |
Increasingly visible to authorities as platform reporting begins |
|
Straightforward to sell or transfer as a going rental business |
Legal exposure passed on to any future buyer |
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Frequently asked questions
Do I need a licence to rent my Cyprus property on Airbnb?
Yes. Registration with the Deputy Ministry of Tourism has been legally required since July 2021, under the “self-catering accommodation” category for individual owners.
How much does short-term rental registration cost?
A non-refundable fee of €222 per property, with registration valid for three years before renewal.
Is short-term rental income taxed differently from long-term rental income?
Yes. It’s treated as business income rather than passive rental income, with its own tax-free threshold and VAT registration rules.
Can my apartment building block me from renting short-term?
National law doesn’t require management-committee consent, but individual buildings can have their own internal rules restricting it — always check before you buy.
What are the penalties for renting without a licence?
Fines of up to €5,000, imprisonment of up to a year, and continuing fines of up to €200 per day, with enforcement increasing as EU platform-reporting rules take effect from May 2026.