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 be on the right side of the law when renting.
In Cyprus, who can rent out their property?
In Cyprus, everyone has a resident or non-resident status. This is not the same as citizenship; we go through this in greater detail in our guide to becoming a Cypriot resident.
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 house 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.
What about renting out your Cyprus house 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. Almost one-fifth of Cypriot households rent instead of owning a property.
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 include both parties’ names and contact information, as well as the rent amount, due date, and contract length.
When renting out a house 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 thinking of renting out a house in Cyprus, you’ve probably heard of this word. 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 past due by 21 days, you’re ready to move in, 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 €310 per month for 60m2 apartments and €510 per month for 120m2 flats. In Limassol, a 60m2 home rents for €535 per month, while a 120m2 property rents for €810 per month. Finally, a 60m2 apartment in Nicosia costs €380, while a 120m2 apartment costs €530.
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.