Cyprus’s Parliament has approved an important innovation for the tourism industry, giving hotels and tourist facilities the opportunity to continue operating even if they do not fully comply with current legislation. This concerns the introduction of a special operating license, which is issued only under strict compliance with requirements—above all in the field of fire safety. The initiative was supported by a majority of MPs, underscoring how relevant the issue is for the country’s economy and the tourism market.
Under the adopted law, the special license is introduced for a total period of up to five years under a three-plus-two-year formula. This means hotels and tourist apartments will be able to operate legally during a transition period while they complete the collection of all required documents and certificates to obtain a final license. Recall that the previous deadline for submitting the full set of documents expired in November 2025, and without the new mechanism a significant share of properties risked closure.
Oversight, transparency, and worker protection
During the discussion, Parliament approved additional amendments that strengthen state oversight. The Deputy Minister of Tourism is now required every six months to inform the Parliamentary Committee on Tourism in writing about the progress of reviewing applications for the special license. This should increase process transparency and reduce the risk of decisions being delayed.
Another important innovation is the requirement to comply with labor rights. Obtaining a special license is impossible without confirmation of compliance with current collective agreements and employees’ working conditions. In this way, the reform addresses not only the legalization of buildings but also business’s social responsibility—especially relevant amid discussions of sustainable tourism development in 2025–2026.
At the same time, Parliament rejected proposals providing for the publication of a list of properties that submitted licensing applications, as well as a ban on participation in state support programs for those who did not obtain a license. These initiatives sparked controversy, as some MPs considered them excessively harsh given the complex bureaucratic reality.
Why licensing has become a systemic problem
During parliamentary debates, representatives of different parties agreed that licensing difficulties are systemic. The transfer of permitting powers to new administrative bodies led to a sharp increase in workload and prolonged procedures. At the same time, there was also criticism of hotel owners themselves, many of whom did not take active steps toward legalization despite repeated extensions.
It was emphasized separately that the new special license should not be seen as encouraging violations. On the contrary, it is viewed as a temporary and last chance to bring properties into full compliance with the law, without further extensions or exceptions.
What the new regulatory model changes
The updated legislation clarifies and simplifies a number of procedures. A unified and standardized approach to reviewing fire-safety plans is introduced, and the review period is extended to six months, reflecting the real workload of the fire service. The fire-safety certificate now remains valid for longer, but it can be revoked if violations are found or if unauthorized changes are made to buildings.
The special license itself is issued for three years, with the possibility of a one-time extension for another two years. After that period, operating without a full license becomes impossible. The law also allows the special license to be reissued when ownership changes, which is important for the investment attractiveness of tourist properties and for purchase-and-sale transactions.
Impact on Cyprus’s economy and tourism
Experts note that the adopted reform helps avoid the mass closure of hotels and apartments, which could have negatively affected the tourist season, employment, and state revenues. Tourism remains one of the key sectors of Cyprus’s economy, and any abrupt restrictions could have triggered a chain reaction in related industries.
At the same time, the new mechanism places stronger emphasis on safety, legality, and business responsibility. With tourists paying increasing attention to quality standards, fire safety, and staff working conditions, this decision may play a positive role in Cyprus’s long-term positioning as a reliable and modern tourist destination.