A TOPIC OF MUCH DEBATE
The explosion of short-term rental properties has steadily increased on the island in recent years. The main reason for this is that most visitors are now seeking value for money accommodation that is easy to let. This new model of short-term letting, however, is prompting much debate with fears being raised regarding its sustainability. The Cypriot Government, seeking to balance tourism growth with housing affordability and legal compliance, hs also raised concerns.
A YEAR ON YEAR RISE
In total, 4.8 million stays were recorded for this type of accommodation in 2024. This marks a 15% rise for similar properties during the previous year. These figures indicate that the short-term rental sector is experiencing significant growth year on year. Just over 8,000 licenses have been issued or renewed for 2025, providing a total of just over 35,000 beds. The district of Paphos leads with the highest number of units. This is followed by the districts of Famagusta, Larnaca, Limassol, and Nicosia in that order.
A BOOST TO LOCAL ECONOMIES
As this concept becomes more and more widespread, concerns are being raised about the wider implications for residents and future visitors to the island. Privately owned short-term rentals are thought to help drive tourism. They also create jobs that boost local economies on the island. However, with the number of short-term rentals surging, several analysts are now warning of a greater long-term negative economic impact. Some analysts are suggesting that this model has already created a shortage of long-term rental accommodation, pushing up rental costs for residents. This has prompted some to call for a ban on short-term rentals altogether!
NEW LEGISLATION FOR SHORT-TERM RENTALS IN CYPRUS
Renting out villas, apartments, or houses without being properly registered is illegal in Cyprus. Legislation that requires registration is now in place for all property owners who are renting out accommodation on a short -term basis. All owners must hold a valid permit, and those who do not face serious penalties.
Those that are operating without a permit, or after a permit has been revoked face fines, a year in prison, or both. Repeat offenders may face an extra €200 fine for each day a violation continues. This push for compliance aims to improve oversight of the rental market and is a response to concerns from the hotel sector about unfair competition from unlicensed rentals.
As a result, all short-term rental units should have a unique registration number under the law. This must be shown clearly in any advertisements for any such properties. The scheme currently has over 9,000 registered properties.
