Cyprus Rejects Proposed Limit on Short-Term Property Rentals

Attorney-General’s Office Turns Down Short-Term Rentals Cap

The Cypriot Attorney-General’s Office has declined a proposed measure that would restrict how many Airbnb-style rentals each individual or corporation can register. Despite this refusal, discussions concerning the short-term rental sector remain active.

Regulation Efforts in the Limelight

The initial proposal was driven by the need to manage the rapid expansion of short-term rentals, often found on platforms such as Airbnb. Under the Deputy Ministry of Tourism’s plan, individuals and companies would have been limited to registering just two self-catering units. This idea gained traction in parliament on February 18, when Deputy Tourism Minister Costas Koumis revealed that a legislative amendment had been forwarded to the Attorney-General’s Office, aiming to mandate pre-listing registration for all short-term rentals.

Concerns Over Industry Fairness

Koumis later clarified that the recommendation aimed to prevent large-scale businesses from bypassing hotel standards. Major investors, often from abroad, were purchasing properties in bulk, designating them as short-term rentals, yet avoiding the regulations that hotels must uphold. This scenario, many argued, led to unjust competition within the tourism sector.

Currently, it’s possible for buyers to acquire 10 to 12 apartments and operate them as short-term rentals—competing with hotels without meeting the same regulatory requirements. By capping the number of permissible rentals, the government hoped to address this imbalance.

Future Outlook for Short-Term Rentals

Although the cap was turned down, other aspects—such as fresh penalties for violations—could still move forward and would not necessitate external input. In the meantime, the House Commerce Committee will examine broad regulations impacting short-term rentals, paying special attention to the latest EU guidelines.

What This Means for Property Investors

As this segment of Cyprus’ real estate market continues to evolve, potential buyers and investors remain attracted to the island’s possibilities. If you are seeking new ways to diversify your portfolio, consider exploring Cheap Houses and Villas for Sale Cyprus or browse through various Apartments to find the right match for your investment goals.