The short-term rental sector in Cyprus continues to grow at a rapid pace, yet the issue of illegal listings remains relevant. According to recent data from the Deputy of the Deputy Ministry of Tourism, 9,153 short-term rental properties are officially registered on the island, offering 39,218 beds. This is a notable increase in legal supply, but the true scale of the market, according to the authorities, is significantly larger.
A study conducted for the department showed that the total number of registered properties reaches about 12,000, even without counting rural and agrotourism accommodation. These figures confirm that the short-term rental market has turned out to be larger and harder to control than previously assumed.
Almost doubling in just two years
The short-term rental registry clearly shows how fast the sector is expanding. In April 2023, Cyprus had 4,765 registered properties with 21,636 bed spaces. Today, these figures have nearly doubled. Paphos remains the leader by number of such properties (4,231), followed by: the free areas of Famagusta (1,791), Larnaca (1,407), Limassol (1,267), and Nicosia (457). The ministry notes that growth is driven both by strong tourist demand and by the fact that more and more owners are trying to operate within the law.
Illegal rentals remain a serious problem
Despite progress in registration, illegal short-term rentals continue to raise concern. Since the beginning of 2025, the authorities have received 81 complaints about unregistered properties operating across the island. The Deputy Ministry of Tourism has stepped up oversight, combining on-site inspections with monitoring of online platforms. Cases with sufficient evidence are referred to the Legal Service to initiate court proceedings.
According to representatives of the department, this is not only about lost tax revenue. Illegal rentals worsen the housing shortage, increase pressure on the real estate market, and affect the affordability of rentals for local residents, especially in tourist areas.
New rules and European oversight from 2026
Cyprus is preparing for major changes in market regulation after Parliament adopted amendments in 2025, bringing national legislation into line with EU Regulation 2024/1028. The new framework will take effect on May 20, 2026 and will become part of a pan-European short-term rental oversight system.
The updated model is expected to increase market transparency, improve data sharing with online platforms, and give the state more effective tools to detect and stop illegal activity. The authorities hope this will allow compliant owners to operate on equal terms, while the short-term rental market in Cyprus becomes more stable and manageable.
Balancing growth and control
Against the backdrop of steady growth in tourist arrivals and strong investor interest, short-term rentals remain an important part of Cyprus’s economy. However, the state is making it increasingly clear that further development is only possible with compliance. Stronger inspections and a shift to pan-European regulation should be key steps toward ensuring that this fast-growing market finally leaves the “grey zone” and begins operating in a fully legal format.