Latest Headlines

Airbnb-style rentals bill moves a step closer

A bill to regulate Airbnb-style short-term rentals moved a step closer following meetings between the heads of Airbnb and booking.com and the Deputy Minister of Tourism Savvas Perdios.

Airbnb-style rentals bill moves a step closer A bill to regulate and tax Airbnb-style rentals, which was tabled in June 2018, has moved a step closer following meetings between Deputy Minister of Tourism Savvas Perdios and the heads of Airbnb and Booking.com according to a report in the Greek-language newspaper Phileleftheros.

According to the report, the parties have apparently reached a deal on how tax on short-term rental income could be collected.

Speaking to MPs, Perdios advised that both organisations could charge landlords a ‘tax’ that could be refunded to the Tax Department. Perdios also advised that he had been in touch with the Tax Commissioner to see if this approach would be the most appropriate and efficient method of collecting this tax.

In June this year MPs completed discussions on the bill regulating the operation of short-term property rentals. As it stood at that time the bill provided a three-year transition period to landlords giving them time to acquire a VAT number and comply with safety and health regulations. It was hoped that the bill could be placed before the plenum before parliament broke for the summer recess.

There are somewhere in the region of 20,000 properties in Cyprus that are rented via Airbnb and other platforms and although some owners are paying tax on the rental income generated, other manage to avoid paying tax.

Official figures show that one-third of tourists visiting Cyprus book their accommodation through sites such Airbnb and Booking.com.

Greece introduced legislation some time ago to tax annual rental income: 15% on income up to €12,000; 35% for income between €12,000 and €35,000; and 45% on income above €35,000. Similar legislation has been introduced in the Netherlands, Britain, Germany, Spain and other European countries.

Submit a comment

This form collects your name, email and your comment so that we can keep track of the comments placed on the website. For more info check our privacy policy where you will get more info on where, how and why we store your data.

 


Comment guidelines

  • All comments are vetted. Please keep all comments on-topic and relevant to the substance of the original article and ensure that the email address you provide is accurate and verifiable.
  • Comments considered to be potentially libellous and those containing racist, vulgar, derogatory, discriminatory or offensive language, personal attacks or advertising will be rejected.
  • Comments must not harass, abuse, or threaten another's personal safety or property, make false statements, defame, or impersonate someone else.
  • Do not submit the same comment more than once or it may be rejected.
  • Comments only please. If you have a question, visit the on-line Cyprus property forum.
  • Comments failing to comply with these guidelines will not be published.

  • Costas Apacket says:

    This additional money grabbing farce is happening at the same time as 70% of the Hotels on the island remain operational whilst being unregistered, many of them with illegal extensions built onto them.

    But that’s OK because they’re ‘connected’ and the normal laws don’t apply to them.

    Everyone needs to check with their travel insurance providers what this means in the event of them making an insurance claim against the Hotels in question.

  • The views expressed in readers' comments are not necessarily shared by the Cyprus Property News.

SELECTED REPORTS

Back to top