On Friday, 19 June, the Cyprus Parliament unanimously approved the extension of the transition period for hotels and guesthouses operating without a full set of licensing documents.
The decision, made on Friday 19 June, grants entrepreneurs an additional 12 months (until summer 2026) to complete all legal formalities and acquire the required permits.
This additional grace period applies to all hotel facilities that began operating prior to the introduction of the Licensing Law around three years ago. These establishments had already been granted a transition period, due to expire in August this year.
The initiative was launched by DIKO MP Christos Pantelidis. He noted that, under the current conditions, many hotel owners simply did not have enough time to legalise their properties.
'We are proposing a reasonable extension, as the majority of the hotel industry has been unable to obtain licences in time,' he commented. Pantelidis commented that bureaucratic barriers, unclear instructions and delays in the work of the Land Department have become serious obstacles.
During the meeting, it emerged that only 14.5% of hotels on the island currently possess the requisite permits. This means that approximately 740 hotels and guest houses continue to operate illegally, despite the introduction of new rules and requirements.
According to the deputies, the new delay should give entrepreneurs respite and push government agencies to speed up the permit issuance process.
There is also discussion about creating an electronic platform through which hotel and guesthouse owners can submit all documents in one place and receive support at every stage of the licensing process.
It is worth mentioning that the extension does not mean that the requirements have been cancelled. After the additional year has expired, sanctions will be applied to those in violation of the law. The authorities expect that, by summer 2026, most hoteliers will have brought their facilities into full compliance with the law.