About a third of Cypriot properties advertised on platforms such as Airbnb are being rented out illegally.
This was revealed recently by the Ministry of Tourism.
According to the ministry, the number of officially registered properties has increased significantly, from 2,343 at the end of 2022 to 8,248 in 2025. However, the Ministry faces difficulties in enforcing regulations due to inadequate legal instruments.In addition, application delays remain a major challenge, with more than 1,200 properties still awaiting approval due to incomplete documentation.
Despite these challenges, the Ministry remains optimistic about the continued growth of the tourism sector in 2025, predicting record visitor numbers and revenues.Meanwhile, calls for stricter oversight of short-term rental properties are intensifying. Members of the parliamentary committee called on the Audit Commission to conduct a thorough investigation into the extent of illegal rentals, arguing that a lack of regular inspections has exacerbated the problem.
It should be recalled that the services of online short-term rental platforms (Airbnb and Booking) are rapidly gaining popularity in Cyprus.
At the same time, until now such properties have not been subject to a strict certification procedure as accommodation in the hotel sector, and the state treasury has been undertaxed on the income of landlords. Therefore, at the beginning of 2020, the Cypriot Parliament passed the "Law on the compulsory registration of short-term rental properties".
According to the changes, the information about every property advertised in Cyprus must include the number under which it is registered in the Cyprus registry. If there is no such number, anyone has the right to report a breach of the rule to the Department of the Ministry of Tourism, which oversees the registration of short-term rental properties. Short-term rental platforms have agreed to provide the Cypriot authorities with information on transactions, which should promote transparency in the taxation process.
Last year, the Cypriot authorities gave a reprieve to those registering, postponing the deadline for penalties to the end of 2024. To register, a special form must be completed online at www.tourism.gov.cy, signed and returned in PDF format. It takes approximately 1 month from the date of application to process the permit. The registration fee for each unit is €222 for 3 years. Income tax is calculated on the basis of annual profits. Amounts under 16 thousand euros are not taxed. Landlords also pay VAT.