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Short-term property rentals will be regulated by law

Short-term property rentals will be regulated by law. Proposals to regulate the licencing of property whose owner rents them online through organisations such as AirBnB have been put before the House by MPs Averof Neophytou (DISY) and Elias Myrianthous (EDEK).

Their proposals would amend the current law on hotels and tourist accommodation by adding provisions that would include the registration and licencing of short-term property rentals (furnished villas and other dwellings). They will also set a licencing framework, technical and functional specifications and other terms and conditions relating to ‘self-catering’ property offered for rent.

The proposals are part of an overall drive to upgrade the quality of the tourist product of Cyprus.

The proposed register of short-term property rentals will be created and managed by the Cyprus Tourism Organisation (CTO) and based on regulations adopted by the Council of Ministers. These will include the criteria and specifications that self-catering accommodation should meet. (Note that the CTO is to be transformed into a State Department of Tourism).

Owners handling short-term property rentals will be required to register with the Tax Department.

Nowadays, a lot of owners of apartments and houses that are suggested to tourists for rent do not pay any income taxes. And it’s very difficult to regulate this question. But we have to take into consideration that during the last 2 years rental prices have been increasing and this tendency still remains. How will these new regulations influence rental prices? Are we expecting another increase?

Nevertheless, there is an expectation that with these innovations short-term property rentals will become safer for tourists. Probably everyone has come accross sad stories on the Internet about spoiled holidays because of the discrepancy between paid accommodation and photos from the ad.

In any way, we hope that this regulation will help to improve the tourist industry in Cyprus and to attract more visitors.

Source: Cyprus Property News.

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