Short-term rental (Airbnb) in Cyprus in 2026: registration, license, taxes

Short-term rentals in Cyprus: what has changed by 2026

Cyprus has long become one of the favorite holiday destinations in the Mediterranean, and therefore an attractive market for daily rentals. For a long time, owners of apartments and villas rented out housing to tourists through Airbnb and Booking without any registration. Since July 2021, the situation has changed: the state introduced mandatory registration of short-term rental properties, and by 2026, control became noticeably stricter.

Legal basis - Law on the Regulation of the Establishment and Operation of Hotels and Tourist Accommodations (Law 34(I)/2019 as amended by Law 9(I)/2020). According to it, any daily rental is equated to working with tourist accommodation in the “self-catering” category and requires the object to be included in the state register of the Deputy Ministry of Tourism.

An important point in 2026: from May 20, the EU’s unified digital database for short-term rentals began operating, which includes Cypriot properties. Booking platforms are now required to check the availability of a registration number, and advertisements without one are deleted. It will no longer be possible to hand over “quietly” as before - the data is linked between platforms, the tax office and the ministry.

What is considered a short-term rental and how does it differ from long-term rentals?

To understand whether you need registration, it is important to distinguish between the two delivery formats. These are not the same thing, either legally or in taxes.

Short-term (tourist) rental - this is the rental of housing for short periods, usually from several days to several weeks, most often to tourists and through sites like Airbnb and Booking.com. It is she who falls under the law on tourist housing and requires registration in the register of the Ministry of Tourism, obtaining a number and meeting security requirements.

Long term rental - this is the rental of housing under a regular rental agreement for a long term (from several months or more), when the tenant lives in the apartment permanently. Such rentals are regulated by civil and rental legislation; registration in the tourist register is not required. Taxes are paid, but the procedure is different.

• Daily rent to tourists - Ministry of Tourism register + number required.
• Monthly rent to a tenant for a year - no tourist number required.
• Mixed format (long-term in winter, daily in summer) - registration is required for the period of daily rental.

If you are just choosing a strategy for your real estate, it is useful to estimate the economics of both scenarios in advance - our analysis is devoted to this profitability of real estate in Cyprus and calculation of rental rates.

State register of short-term rentals: why do you need a number

The heart of the entire system is the national register of short-term tourist accommodation, maintained by the Deputy Ministry of Tourism. It is prohibited to rent out an object on a daily basis without an entry therein.

After successful registration, the owner receives a unique Registration License Number. This number is not a formality: it is required to be included in every listing, booking platform and guest materials. In essence, this is a “passport” of a legal object.

Why did the state introduce this?

• bring the daily rental market out of the shadows and tax it on the same basis as hotels;
• guarantee tourists a minimum level of housing safety;
• enable sites and the tax office to automatically check whether an object is legal.

You can apply online on the official portal Deputy Ministry of Tourism (tourism.gov.cy). Both an individual and a company have the right to register an object.

How to register an object: step-by-step procedure and conditions

The registration procedure is clear, but requires the preparation of documents and bringing the housing into compliance with safety requirements. Let's take it step by step.

• Step 1. Tax number. Before submitting your application, you must register with the Cyprus Tax Department and obtain a Tax Identifier (TIN) and, if necessary, a VAT number.
• Step 2. Insurance. Take out a valid home insurance policy - at least against fire and natural disasters, as well as civil liability insurance for guests.
• Step 3. Documents for the object. Prepare a package: title of property (or owner's consent), building permit, floor plans, electrical safety and energy efficiency certificate, fire safety confirmation.
• Step 4. Submit an application. Fill out the online application at tourism.gov.cy and pay the registration fee - 222 € per property.
• Step 5. Check. An inspector may visit the site to ensure compliance with safety standards.
• Step 6. Obtaining a number. Upon approval, a registration number is issued. The registration period is about 1 month from the date of submission, the license is valid for 3 years, then renewed.

Many investors buy housing specifically for daily rent in tourist locations - for example, in Ayia Napa. We wrote in detail about the specifics of such a market in the material about buying property in Ayia Napa for rent.

If you are just planning to enter the Cypriot real estate market and want to build a legal rental scheme for your purposes in advance, it makes sense to discuss the structure of the transaction before purchasing. BRIDGES GLOBAL lawyers will help you select an object, check its suitability for registration and assist with registration - leave a request for a consultation.

Facility requirements: safety, insurance, equipment

Registration is not just about paying a fee. Housing must meet a set of safety and equipment requirements. They are checked during registration and can be monitored later.

Basic requirements for a short-term rental property:

• Fire and natural disaster insurance - obligatory valid policy for the object.
• Civil liability insurance in front of guests - covers injuries and damages; typical minimum coverage is around €500,000.
• Fire safety - interconnected smoke and fire sensors in residential and sleeping areas, availability of fire extinguishing equipment.
• Electrical safety - a valid certificate for electrical wiring.
• Legality of construction - construction permit and floor plans, the object should not be a self-construction.

These demands are not bureaucracy for the sake of bureaucracy. A tourist, when booking accommodation with a registration number, receives a guarantee that the apartment has a fire alarm and insurance in case of emergency. This is also protection for the owner: in the event of an incident, liability insurance will protect you from large payments out of your own pocket.

Taxation of income from short-term rentals

Income from daily rentals is ordinary taxable income that must be declared. From 2026, the tax picture for individual landlords looks like this.

Income tax. Rental income is taxed on a general progressive scale for individuals (after the 2026 reform):

GHS Health System Contribution (GESY). An individual pays 2.65% on rental income. The contribution is assessed on income up to an annual ceiling of €180,000. GHS companies do not pay rental income.

Deductions. By default, 20% is deducted from gross income as notional expenses; in addition, depreciation (3% of the cost of construction per year) and mortgage interest can be taken into account.

VAT (VAT). If the turnover from short-term rentals exceeds €15,600 in any 12 months, you need to register under VAT; Accommodation services are taxed at a rate of 9%.

SDC. The special contribution for defense on rental income has been abolished for all Cyprus tax residents from 1 January 2026.

The tax topic is closely related to resident status - we have compiled a detailed analysis of rates and benefits in the guide on taxes for Cyprus permanent residence holders.

Summary table: requirement - what is needed - fine for violation

To make it convenient to keep before your eyes the entire checklist of legal daily rent, let’s summarize the key requirements and the consequences of violating them in one table.

Fines for illegal delivery without registration

Renting daily without registration or with a revoked license is a criminal offense under Cypriot law. The sanctions are serious, and in 2026 they are used more actively than before.

• Main punishment - imprisonment for up to 1 year, or a fine of up to 5,000 €, or both.
• Ongoing violation - if after conviction the object continues to be rented out, an additional fine of up to 200 € is assessed for each day of violation.
• For persistent offenders administrative penalties can reach 20,000 €.

Additionally, booking sites remove advertisements without a valid number. That is, even without verification from the ministry, the illegal property simply ceases to generate income - it is removed from Airbnb and Booking. Saving 222 € on registration against the backdrop of such risks seems completely unreasonable.

Regional features: where the rules are stricter

The basic law on short-term rentals applies throughout Cyprus, but in practice municipalities and individual tourist areas may have their own additional requirements and restrictions. They must be checked before purchasing an object for rent - otherwise, you can buy an apartment in an area where daily rentals are limited or completely undesirable.

What to pay attention to by region:

• Resort areas (Ayia Napa, Protaras, Limassol Marina). The highest demand and profitability, but also the closest control - inspections are regular here.
• Residential complexes and condominiums. The management company or the owners' agreement may limit daily rentals, even if they are permitted by law. This needs to be checked in the rules of the complex.
• Cities (Nicosia, Larnaca, Paphos). The demand is more even, the requirements are standard, but tax and registration controls are just as strict.
• Rural and mountainous areas (Troodos). Often attractive for agritourism, sometimes there are separate programs and support for tourist housing.

The main practical advice: before buying real estate specifically for Airbnb, make sure that in a particular complex and area daily rentals are allowed and really in demand. This check should be done together with a lawyer before signing the contract.

Is it possible for a Cyprus permanent residence holder to rent out housing on a daily basis?

A frequent question from investors who have received a permanent residence permit through the purchase of real estate: will daily renting violate the conditions of the status? After all, permanent residence under the Regulation 6.2 program assumes that the applicant is not employed in Cyprus.

Answer: you can take it. Income from renting your own property is passive investment income, not “work for hire” for a local employer. The ban under permanent residence specifically concerns employment, and the management of one’s own property does not fall under it.

At the same time, it is important to comply with all the formalities of legal rental: register the property in the registry, obtain a number, declare income and pay taxes. That is, permanent residence status does not exempt from the rules of short-term rentals - on the contrary, it is all the more important for the status holder to conduct everything according to the law so as not to create risks for his residence.

If you are considering buying a home in Cyprus as both a way to gain status and a source of rental income, it makes sense to study how the program itself works - this is what our guide to Cyprus permanent residence permit for investment.

How properties are checked and what is important for an investor to take into account

Control over the daily rental market in Cyprus in 2026 is multi-level. Understanding exactly how violators are identified helps you avoid getting sanctioned by accident.

• Reconciliation with the register. The Ministry of Tourism compares advertisements on sites with a database of registered objects; listings without numbers visible.
• Responsibilities of platforms. Airbnb and Booking.com are required to monitor the presence of the registration number and remove illegal listings.
• Common EU framework. Since May 2026, data from Cypriot properties has been included in the pan-European digital short-term rental database.
• Tax control. Income from sites is visible to the tax authorities; discrepancies with the declaration lead to additional charges.
• Regional nuances. Additional restrictions may apply in certain areas and zones - please check these prior to purchase.

The main conclusion for the investor: the legalization of short-term rentals in Cyprus is a one-time procedure and a small fee, which opens up a completely legal income. It costs much more to try to save money and work in the shadows.

Typical mistakes of owners and how to avoid them

In practice, most problems for landlords arise not because of malice, but because of oversight. Here are the mistakes that occur most often.

• They rent until they receive a number. The property is listed on Airbnb immediately after purchase, without waiting for registration. Even a few nights without a number is already a violation.
• They do not indicate the number in the ad. There is registration, but they forgot to put the number in the listing - the site may remove the ad, and the inspection may regard it as a violation.
• They don't declare income. They believe that “a couple of reservations in the summer” will not be of interest to the tax authorities. The data from the sites is visible, and the discrepancy emerges.
• Ignore VAT threshold. Having crossed 15,600 € of turnover, they are not registered under VAT and are subject to additional charges.
• Save on insurance. They take out only a basic policy without civil liability - and are left alone with a claim if a guest is injured.

All these situations can be easily prevented at the planning stage. Proper preparation of the object and documents before the first reservation saves you from fines and nerves in the future.

Facility management: independently or through a company

When an object is registered and legalized, the question of daily operations arises: who will greet guests, clean, answer messages and monitor reservations. Both the net profitability and how much rent takes up your time depend on the model you choose.

Two main approaches:

• Self-management. Suitable for those living in Cyprus or nearby. You yourself manage the Airbnb and Booking calendar, organize cleaning and check-in. Plus - the maximum income remains with you; the downside is the constant involvement and response to guest messages 24/7.
• Management company. Takes care of the entire cycle - from check-in and cleaning to communication with guests and tax reporting. The commission is usually a percentage of turnover. This is convenient for remote owners, including those living abroad.

For investors who buy property in Cyprus remotely and do not plan to permanently live on the island, professional management is most often justified: it relieves the operational burden and reduces the risk of violations - the company ensures that the registration is up to date, the number is indicated in advertisements, and income is correctly declared.

At the planning stage, it is useful to calculate the net profitability in advance, taking into account the management company’s commission, taxes and seasonality - it is the real, and not the “paper” profitability that determines how much the property pays off.

Bottom line: short-term rentals in Cyprus in 2026 are profitable if you follow the rules

Cyprus remains one of the most attractive destinations in the Mediterranean for daily rentals: a stable flow of tourists, a high season from spring to autumn and a clear legal environment. But the wild Airbnb market is a thing of the past - it is now a regulated activity with registration, taxes and safety standards.

The good news is that entering the legal field is not difficult: registration costs 222 € for three years, is completed in about a month and removes all the risks of fines of up to 5,000 € and removal of advertisements. Cyprus permanent residence holders also have the right to rent out housing on a daily basis - this is passive income, and not prohibited employment.

If you are planning to purchase real estate in Cyprus for rent or want to build a legal and tax-efficient scheme for renting out an existing property, BRIDGES GLOBAL lawyers will guide you all the way - from choosing a property and checking its suitability to registration in the register and tax planning. Sign up for a consultationto discuss your situation.