According to the new rules, property owners who want to rent out their property in Cyprus for short-term rent on Airbnb are now required to be in the National Housing Registry and have a special serial number.
Otherwise, they cannot post their properties on the popular platform.
On Monday 19 July, the Cyprus Deputy Ministry of Tourism announced the start of the application process for registering premises (villas, houses, apartments) in the new registry. This can only be done online at www.tourism.gov.cy. Applications can be submitted by both individuals and legal entities.
Before applying for registration of housing in the register of the Deputy Ministry of Tourism, the applicant must have:
- Registration with the tax department (tax identification number or VAT, if provided by the relevant legislation) of the Republic of Cyprus.
- Valid home insurance, at least against fires and natural disasters.
In other words, when registering on Airbnb, property owners will now be asked for the serial number assigned by the Government of the Republic of Cyprus in the National Register. Otherwise, the landlords will not be able to register on Airbnb.
As you may know, before this law came into force, homeowners were allowed to rent out their property, if they payincome tax VAT in favor of the government and daily fees to local authorities.
Now, owners will pay an additional registration fee (222 euros for three years) for each housing unit, which will be assigned a serial number.
Owners of properties that are already in the Airbnb platform database must register by the end of 2022. The Deputy Ministry of Tourism of the Republic of Cyprus will monitor the implementation of the new rules. From February 7, 2022, it will begin to conduct inspections of landlords in order to identify violations. This includes checking for registration and serial numbers in the National Registry, as well as compliance with the conditions for registering a home as an entrepreneur on Airbnb.
Cyprus has currently more than 20 thousand properties rented on Airbnb.
According to KPMG's Hospitality Report, property owners rented out 23.1 thousand housing units for short-term rent in Cyprus in 2019, which is 27.7% more than in 2018. There were 429.1 thousand bookings.
We must admit that by entering the National Register, many tenants will be closely monitored by the authorities. If the annual income exceeds €15.6 thousand, they will have to pay taxes.
It is possible that not everyone will want to enter the register. And those who joined are likely to raise housing prices, taking into account taxes.
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