Legal Considerations for Renting Out Your Property in Cyprus
Learn about the legal requirements for renting property in Cyprus. Includes short-term rental laws, licensing, tax obligations, and landlord responsibilities.
Legal Considerations for Renting Out Property in Cyprus
Renting out property in Cyprus can generate significant income, but landlords must comply with national laws and regulations. Different rules apply for long-term rentals compared to short-term tourist accommodations.
Long-Term Rental Regulations
• Governed by the Rent Control Law in certain urban areas.
• Standard rental agreements usually last 1–3 years.
• Tenants gain strong legal protections after 5 years of continuous residence.
• Eviction requires specific legal grounds and court approval.
Short-Term and Holiday Rentals
• Since 2020, landlords must register short-term rentals with the Deputy Ministry of Tourism.
• Registration requires proof of ownership, safety compliance, and tax registration.
• Platforms like Airbnb require valid license numbers to list properties.
• Non-compliance can lead to fines and removal of listings.
Tax Obligations on Rental Income
• Rental income is subject to income tax for both residents and non-residents.
• Special Defence Contribution (SDC) applies to residents on rental income.
• VAT may apply if renting furnished property as a business activity.
• Landlords must declare all rental income annually.
Landlord Responsibilities
• Maintain property in safe and habitable condition.
• Provide valid contracts lodged with the Tax Office.
• Ensure utilities and municipal charges are paid.
• Respect tenant privacy and rights under Cypriot law.
Case Study: Non-Compliant Airbnb Host
In 2021, a Larnaca landlord rented apartments on Airbnb without registering. The Ministry of Tourism imposed fines and suspended listings until compliance was achieved.
Case Study: Compliant Holiday Rental in Paphos
A British investor registered their villa as a tourist accommodation in 2022. The property achieved high occupancy through Airbnb while avoiding legal penalties.
Checklist for Landlords
1. Decide between long-term and short-term rental model.
2. Register rental agreements with the Tax Department.
3. Register short-term rentals with the Deputy Ministry of Tourism.
4. Declare rental income annually for tax purposes.
5. Maintain safety and habitability standards.
6. Consult legal experts for tenant disputes.
FAQs on Renting Property in Cyprus
Q: Do I need a license for long-term rentals?
A: No, only a contract registered with the Tax Department.
Q: Can foreigners rent out their Cyprus property?
A: Yes, with compliance to tax and registration requirements.
Q: What happens if I don’t register an Airbnb property?
A: You may face fines and deactivation of listings.
Q: Are rental profits taxed differently for non-residents?
A: Non-residents pay tax only on Cyprus-derived income.
Q: How can I evict a tenant legally?
A: Only through court order based on valid legal grounds.
Final Recommendations
Renting property in Cyprus offers excellent opportunities, but compliance is essential. Landlords must choose the right rental model, register with the proper authorities, and remain aware of tax obligations.