The Cypriot authorities are preparing to significantly tighten the rules governing the short-term rental market. The Deputy Ministry of Tourism is drafting new legislation that will strengthen oversight of properties listed on popular platforms such as Airbnb and Booking.com. The move follows the findings of an inspection which revealed that a substantial proportion of tourist accommodation is operating in breach of regulations or is not registered in the official registry at all. The new measures are intended to make the market more transparent, improve tourist safety, and ensure fair competition among property owners.
Inspections uncovered widespread violations
A special report by the Cyprus Audit Office found that many villas, apartments, and holiday homes advertised on online platforms are either missing from official government registers or are using invalid licence numbers. During a sample inspection of 150 properties in the free areas of Famagusta District, inspectors identified 23 apartments and houses that could not be found either in the Register of Tourist Accommodation or in the Deputy Ministry of Tourism's Register of Self-Catering Accommodation.
In 14 cases, property owners failed to provide any registration licence number, despite this being a legal requirement. In another nine listings, licence numbers were displayed but did not match official government records—they were either invalid or belonged to different properties. According to the auditors, the actual number of illegally operating properties is likely to be significantly higher than the sample inspection revealed.
Particular attention was given to self-catering accommodation, which represents the largest segment of Cyprus' short-term rental market. As of 6 May 2026, the official register contained 8,464 licensed properties nationwide. However, the inspection results painted a worrying picture.
Of the 20 listings examined, only six properties (30%) fully complied with legal requirements and held valid registrations. Ten properties (50%) had no licence at all, while in four cases (20%) the licence numbers provided did not correspond with the government registry. These findings suggest that a significant share of the market continues to operate outside effective state oversight.
Airbnb complicates enforcement efforts
Another major issue highlighted in the report concerns the quality of information published in online listings. According to the auditors, many Airbnb hosts in particular fail to provide the exact property address, official property name, or other details that would allow the accommodation to be clearly identified. As a result, government authorities are often unable to determine which specific property is being advertised, even when they suspect legal violations. At present, many inspections are carried out manually, while information sharing between government agencies and international booking platforms remains extremely limited. This increases the workload for public officials, slows enforcement efforts, and allows non-compliant property owners to avoid accountability.
Calls for tighter regulation were further reinforced by the building collapse in Germasogeia on 11 April 2026. The building contained three registered short-term rental properties. Although local authorities had declared the structure unsafe in March 2026, the Deputy Ministry of Tourism was never informed. Because no integrated information-sharing system existed, the apartments remained listed in the official registry and continued to be available for booking through online platforms until the building collapsed. The incident highlighted the need for closer cooperation between public authorities and the introduction of modern digital monitoring systems.
What will change for property owners
The Deputy Ministry of Tourism has confirmed that it is preparing new legislation to regulate the short-term rental sector. In addition to mandatory property registration, owners are expected to be required to obtain additional safety and compliance certificates. Regular on-site inspections are also planned so that the official registry becomes not merely a database but a comprehensive quality control system for tourist accommodation.
A further boost to enforcement will come from EU Regulation 2024/1028, which entered into force in May 2024, with its main provisions beginning to apply from 20 May 2026. The regulation requires digital short-term rental platforms to verify property registration numbers and share information with national authorities. This will make it easier to identify illegal listings and improve market transparency across the European Union.
Short-term rentals remain one of the fastest-growing sectors of Cyprus' tourism industry. However, as the market expands, so does the need for effective government oversight. The new rules are expected to improve tourist safety, protect the interests of compliant property owners, and reduce the number of illegal rental properties operating without the required permits. Experts believe that once the legislation comes into force, the market will become significantly more transparent, while standards for accommodation quality and safety will be substantially strengthened.