Renting out your holiday house in Cyprus can be a smart way to make some money while you’re not there. However, there are severe laws that must be followed in order to stay on the right side of the law.
In Cyprus, who can rent out their property?
In Cyprus, everyone has a resident or non-resident status.
Based on this, the rules for renting differ. Non-residents are not permitted to rent their property out to tourists on a short-term basis; only Cypriot residents are permitted to do so.
This is because the approval you’ll get from the Council of Ministers to buy your property will almost always include this as a condition.
What options do you have for renting out your property on a short-term basis?
If you want to rent out your property in Cyprus for a short period of time, each lease must be longer than 30 days. It would be unlawful if it was any shorter. This is due in part to a lack of legal certainty. The notion is that a lease of less than 30 days can only be used for non-commercial reasons — and whether tourists count as domestic or commercial is a point of contention.
There are plans in the works to implement a new registration mechanism that would allow houses to register and receive clearance from the Cyprus Tourism Organisation. Keep up to date with the situation by following Cyprus Property Guides.
Registration is currently governed by the Hotel and Tourist Establishments Law and Regulations. A resident can receive a license under these conditions, but it is a challenging process. You must provide the following information to the CTO:
- The building permit for the property
- The title deeds to the property
- The architectural plans for the property
In Cyprus, you’ll find a lot of Airbnbs being rented out, but keep in mind that this is illegal. A maximum fine of €512 is possible, as well as a six-month prison sentence.
Why not rent out your Cyprus property to locals on a long-term basis?
Residents of Cyprus can rent their homes to other Cypriots as domestic houses. This is a popular choice among many families in the area. Rather than buying a home, about 18 percent of Cypriot households rent.
To ensure that your contract is properly drawn out in Greek, it is recommended that you utilize a local lawyer and a certified translation.
Any tenancy of more than one year must be drawn up in the presence of two witnesses. There are no specific legal criteria for what should be included in a lease contract. In general, it’s a good idea to have both parties’ names and contact information, as well as the rent amount, due date, and contract length.
When renting out a property in Cyprus, what kind of lease terms are available?
According to a Supreme Court judgement, open-ended leases are prohibited in Cyprus. If you utilize an open-end lease, it will be deemed periodic by default.
There are no restrictions on the lengths of periodic rentals. Similarly, there are no deposit rules. It usually amounts to one or two months’ rent. Having a guarantor is uncommon.
What is the definition of a statutory tenant?
If you’re trying to rent out your property in Cyprus, you’ve probably heard of this term. This only applies to properties developed before December 31, 1999 that are governed by the Rent Control Law. The law was enacted to safeguard refugees from Northern Cyprus, and it makes removal more difficult. If you terminate the tenancy but the tenant chooses to remain, they become a statutory tenant. Apart from the lease duration, they must continue to pay rent and comply with all tenancy rules. You can only evict them if the rent is 23 days past due, you’re ready to move in yourself, or you’re planning to demolish or drastically alter the structure.
How much money do you think you’ll be able to make?
We can’t forecast the future, but we can look at historical averages. Apartments in Larnaca rent for €320 per month for 65m2 apartments and €510 per month for 120m2 flats. In Limassol, a 60m2 property rents for €535 per month, while a 123m2 property rents for €830 per month. Finally, a 60m2 apartment in Nicosia costs €390, while a 130m2 apartment costs €550.
Have you made the decision to rent out your home in Cyprus?
Keep up to date with Cyprus Property Guides if you’re planning on renting out your property in Cyprus. You’ll get the most up-to-date information on property in Cyprus, as well as any regulatory changes.
Benefits of Renting
You can rent a solitary room or discover a suitable house or apartment in Cyprus. There are numerous solutions available, but you must understand how to make the best decision and what documents you must prepare.
It is self-evident why renting a bungalow or other type of accommodation in Cyprus is preferable to staying in a hotel:
- You’ll have extra beds as a result of this. The entire family or company can stay in one apartment, resulting in a sense of belonging and comfort.
- There’s no need to conform to the hotel’s schedule. It will also reduce the amount of noise generated by most hotel entertainment activities.
- You can stay away from hotels and enjoy the freedom of action if you want to avoid a huge number of tourists.
- If you opt for a home with a private pool, you can be confident that the water is clean because it is only utilized by one family or business.
- You may make your own food in a rented house or apartment, which is ideal for families planning a trip to Cyprus with their children.
- The biggest benefit of renting a single home is the cheaper cost per person compared to booking many hotel rooms.
The majority of rented apartments are in places with numerous attractions and good beaches. All of these advantages are particularly valuable to individuals who intend to stay on the island for a lengthy period of time.