On Wednesday 16 October, the Cyprus Sub-Ministry of Tourism reminded owners of properties renting out short-term accommodation on the AirBnB platform that they must declare their properties or risk being fined.
The ministry noted that there are currently 8,000 self-catering establishments in the island state, which can accommodate around 35,000 people.
The largest number of such establishments are located in Paphos (3,816). It is this city that leads by a large margin. It is followed by Famagusta (1,767), Larnaca (1,104), Limassol (939) and Nicosia (292).
Demand for short-term rentals has grown in recent years, driven by the desire of younger generations to remain flexible when travelling. In addition, Airbnb apartments, when combined with cheap tickets, can reduce the overall cost of travel. The Cypriot economy also benefits from tourists using short-term rentals to rent cars, use public transport and visit shops and restaurants. However, hundreds of accommodation units continue to be rented out illegally. The exact number of such properties is unknown.
The Sub-Ministry of Tourism is urging owners not to ignore the rules, but to register their properties as soon as possible. This can be done online on the department's website.
Recall that according to the regulations in force in Cyprus, property owners who wish to rent out their property for short-term rental through the services of AirBnB, HomeAway or booking.com are required to be registered in the National Housing Registry.
To do so, they must 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
- Registration with the Revenue Department of the Republic of Cyprus (Tax Identification Number or VAT Identification Number, if required by the relevant legislation).
- Valid house insurance, at least against fire and natural disasters.
When registering with Airbnb, HomeAway or Booking, property owners should be asked for a serial number assigned to them by the Cypriot government in the National Registry. Without this number, landlords will not be able to register with the online platforms.
Until registration in the National Register, homeowners have the right to rent out their properties, subject to payment of the appropriate VAT to the State and per diem fees to the local authorities. After receiving a serial number, property owners must pay an additional registration fee of 222 euros per unit for three years.
Enforcement of the new rules will be monitored by the Cyprus Sub-Ministry of Tourism. The agency has the right to conduct inspections of landlords to identify violations. Among other things, it may require registration and serial numbers in the National Register, as well as monitor compliance with the conditions of registration of housing entrepreneurs on short-term rental sites.
Short-term rentals without a license are punishable by up to one year in prison and/or a fine of up to €5,000. In the case of a repeated violation, the fine will be considered up to 200 euros for each day.