Deputy Tourism Minister Costas Koumis announced on Wednesday 15 May that Cyprus has started accepting applications for the renewal of licences for accommodation rented out on a short-term basis.
There are now more than 6.7 thousand self-catering accommodation units on the island, which can accommodate more than 30 thousand people. The demand for short-term rentals has increased in recent years because the younger generation prefers to remain flexible when travelling. In addition, Airbnb flats, combined with cheap air tickets, offer an opportunity to reduce the overall cost of travel.
Koumis reminded that advertising and renting out apartments and houses on a short-term basis through various services in Cyprus can only be done after obtaining the relevant licence from the Sub-Ministry of Tourism and registering the accommodation in the Self-Catering Accommodation Register. There are penalties for non-compliance. Renting short-term accommodation without a licence is punishable by imprisonment for up to one year and/or a fine of up to €5,000. In the case of a repeated offence, the fine is up to 200 euros per day.
Koumis noted that, according to the relevant legislation, the application for the renewal of the licence must be submitted within three months before the expiry of the valid documents. It is important to note that the renewed licence is valid for five years. The fee for the initial registration of the establishment and the renewal of the current licence is set at €222. Applications will only be accepted via the online platform.
In addition, the MEP warned that late licence renewal applications will not be considered. In such cases, the applicant will have to reapply for a licence to register their flat or house, attaching all the necessary documents.
It is recalled that under the new rules, property owners in Cyprus who wish to let their property for short-term rental through AirBnB, HomeAway or booking.com must be registered in the National Housing Register.
To do this, they will need to obtain a special serial number on an online platform that will be developed by Ministry of Tourism staff in mid-2021. Both individuals and legal entities can apply. At the same time, they must have
- Be registered with the Revenue Department of the Republic of Cyprus (taxpayer identification number or VAT number, if required by the relevant legislation).
- Valid home insurance, at least against fire and natural disasters.
When registering with Airbnb, HomeAway or Booking, property owners will be asked for a serial number assigned to them by the Cypriot government in the National Registry. Without this number, landlords cannot register on the online platforms. Until registration in the National Registry, landlords are entitled to rent out their property, subject to payment of the relevant VAT to the state and daily fees to local authorities. After receiving a serial number, property owners must pay an additional registration fee of €222 per unit for three years.
Enforcement of the new rules is to be overseen by the Cyprus Sub-Ministry of Tourism. At present, the department has the power to carry out inspections on landlords to detect violations. This includes requesting registration and serial numbers in the National Register, as well as monitoring compliance with the terms of registration of accommodation by entrepreneurs on short-term rental websites.