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Restrictions on Cyprus Property Rentals

Many foreigners in Cyprus used to let their properties illegally, whether through ignorance or in defiance of the law, and some of them are prosecuted. However there are ways make your letting legal.

Cyprus law is clear on property letting subject: non-residents are not allowed to let property on a short-term basis to tourists, though they can let long-term to Cypriot residents.

The restriction is linked to the fact that non-resident foreigners (even EU-citizens) must acquire a permission to buy property in Cyprus.

If you are a Cypriot or an EU-citizen Cyprus resident, you must submit an application to the Council of Ministers for permission to purchase a property. Even though this is almost always a formality, permission is granted on those conditions that the property will not be used for commercial purposes or will be let only on a long-term basis to Cyprus residents.

It is illegal to let a property on a short-term basis to tourists and you have to apply to the Cyprus Tourism Organization (CTO) to have the property declared for holiday letting. Such certification is a long and complicated procedure and it is permitted only on detached properties. There are many developers and estate agents who can help with this procedure, but it is vital obtain an independent legal advice before you commit yourself financially. The CTO will have to check your property in a way that it inspects any tourist accommodation and will charge you 3 % of your expected income from the property annually. You will pay this fee though you do not receive the estimated projected income or any income at all.

If you are planning to let public development, you should also check if there are any community rules that restrict letting apart from the legal restrictions. In addition you may be required to inform your insurance company.

If you are not Cyprus resident and you are planning to buy and let property, you should take professional legal advice before committing yourself.

If you let Cyprus property, you have to pay tax on your rental income in Cyprus though the income is received in another country.

Many people let their properties to their families and friends on a short-term basis illegally and many developers and estate agents offer a buy-to-let service due to this purpose. Though the law is clear, it is not strongly controlled, as the Cyprus government realizes that the constant increase of investments in the island and increase of tourist revenue is a result from such lets that are boosting the economy; so they do not want to restrain property buyers or potential investors, who will pay taxes, nor tourists, who will spend money in Cyprus.

Since Cyprus has joined the EU in May 2004, the country has to pass through a period of changes and adaptation, and as the legal experts say the letting laws may change in the near future. However, if you are planning to buy and let, you must obtain a legal advice from a qualified professional.


Most people who work with holiday lettings prepare a simple agreement that usually includes a description of the property, the names of the clients, and the dates of their arrival and departure. However you may want to check with a lawyer that your rental agreement is legal and includes all the necessary safeguards. If you use an agent, he will provide you a standard rental contract.

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