Cyprus has passed a new law regulating short-term rental properties, changing the rules for tourist accommodations. The decision was unanimously approved by the Cypriot Parliament and aims to implement European standards of transparency and control.
The law ensures full compliance with the new EU regulation that establishes uniform rules for collecting, sharing, and analyzing data on short-term rentals. It applies to property owners who rent out their homes via online platforms such as Airbnb, Booking, Expedia, and Vrbo.
Objective: Combating the Shadow Market and Protecting Tourists
Under the updated legislation, Cyprus introduces a system designed to prevent illegal rentals and ensure transparency for both tourists and authorities. All properties offered for short-term stays must now have an official registration number, and platforms are required to verify the accuracy of this information. Listings without a valid registration number will be considered violations.
The law also imposes strict penalties for landlords and digital platforms that fail to comply, including fines, suspension of operations, and restricted access to platforms.
Digital Transparency and Data Sharing
A key aspect of the reform is the creation of a system for sharing statistical data between online platforms and government authorities. This will allow the state to monitor:
- Short-term rental trends
- Occupancy levels
- Tax revenue
- The sector’s impact on the housing market
All data will be collected and processed anonymously to protect personal information. Researchers and analysts will also be able to use the data to evaluate the economic impact of tourism in Cyprus and across Europe.
Harmonized Rules Across Europe
The new law aligns Cypriot legislation with the EU regulatory framework, introducing standardized requirements for registration, reporting, and accountability for property owners and platforms.
Starting 20 May 2026, a unified EU digital database will include information on all registered short-term rental properties, including those in Cyprus. Tourism industry representatives in Cyprus support this initiative, as it creates fair competition between short-term rental owners and the hotel sector, where compliance has always been mandatory.
Impact on the Cypriot Market
The short-term rental sector in Cyprus has been growing rapidly; according to the Ministry of Tourism, over 15,000 properties are currently rented on a daily basis. However, many operate illegally, without paying taxes or adhering to safety standards.
The new law aims to level the playing field, improve service quality, and ensure market transparency. Experts also note that it could help stabilize housing prices by reducing the number of illegal rentals that distort the real estate market.
Benefits for Tourists
These measures are intended not only for market control but also to enhance the tourist experience. Clear rules will help travelers choose accommodations with guaranteed safety and accurate information.
With this law, Cyprus becomes one of the first EU countries to implement the European short-term rental regulatory system—a move that strengthens the island’s reputation as a safe, reliable, and well-regulated destination for tourism and investment.