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Wednesday 30th September 2020
Home Legal Matters Law regulating Airbnb rentals passed

Law regulating Airbnb rentals passed

THE OWNERS of self-catering accommodation with services such as Airbnb will now have to register with the state under a new law passed by the House of Representatives on Friday.

The bill, which covers both new and existing accommodation, was passed by 52 MPs for and two MPs against.

The bill was proposed by ruling DISY party head Averof Neophytou and EDEK MP Elias Myrianthous. The proposal was amended ahead of voting to include a clause on extending the time period for existing Airbnb owners to streamline themselves with the bill. The time period was increased from one year to two years.

New landlords will have to register immediately.

An amendment put forward by AKEL, EDEK, and ALLILEGGI (Solidarity) was also passed. The amendment removed the condition which did not allow for accommodation in communal units to register.

During the discussion preceding the vote, Neophytou said an issue that was uncontrolled was being regulated so that a household can have an additional legal income.

Tourism minister Savvas Perdios told MPs last October that after talks with platforms like Airbnb and Booking.com, the latter agreed they would obligate users to enter a serial number – provided by the Cyprus government – before allowing home-owners to use their services.

The bill aims to create a dedicated registry for short-term self-catering accommodation, where each property rented will be assigned a number. According to Perdios, that number would then be provided to online platforms, ensuring the property advertised is approved by the government.

The platforms also agreed to provide authorities with transaction-related information that might help for the purposes of taxation.

6 COMMENTS

  1. Individual villas / apartments are Air B’n B type rentals! There are thousands of whole properties for rent on Air B n’B world wide, not just rooms to rent. Hotels / villa companies use the site too.

    This means that the thousands of properties which were illegally marketed, sold (and funded) to foreign buyers by Cypriot Developers and their Banking buddies under the approving eye of the Cyprus Government still cannot be legally rented out. We have all been criminalised, and the Banks have been processing illegal rents (i.e. the proceeds of crime). Doesn’t Cyprus’ criminal code have something to say about that?

    At least when I am bankrupt after the Bank calls in its illegal loan, granted for an unlawful purpose, and I have lost everything, I can seek free board and lodging in a Cypriot jail.

    Funny that the Administrative court waived Alpha’s 250k euro fine for unfair terms and unfair commercial practices because the CCPS did not prove the complainants were consumers even though they were, likely as not, renting out properties on short term holiday lets which could not legally be let. These rents are servicing Alpha’s crippling interest payments. Alpha has managed to escape the fine on a technicality, but has now (in a court of law) confessed to receiving, and processing illegal rents (i.e. money laundering). What’s the penalty/ defence for that? If anyone is in court soon, perhaps they can ask the question and let us all know.

    No laws in Cyprus are retrospective unless they benefit the Banks (like foreclosure / transfer of property).

  2. Does this new law on Airbnb type rentals require UK owners of property in Cyprus which they rent out to holidaymakers mean we pay income tax in Cyprus as ownersalready have to pay UK tax at present on these properties. Is this double taxation ?

    Ed: Some people are already paying tax to the Cypriot authorities on the income derived from renting their property. But this can be claimed against the tax paid to HMRC; they don’t pay twice.

  3. Does this actually legalise all those properties that were illegally marketed, sold (and financed) for holiday lettings when they were not legally allowed to be so let?

    Will this decriminalize the letting activities of tens of thousands of foreigners who were lured into criminal activity by the Bank – Developer – Solicitor teams and stop the bank’s money laundering (i.e. receiving illegal rents to pay the unlawful loans that were granted for an illegal purpose?)

    Under current legislation it is not possible to let out a property under 1000 square metres because no CTO license will be granted, and it can attract a 6 month jail sentence but Cyprus’ prisons are not big enough to accommodate all the victims of property mis-selling, even if the courts could process them all (which they can’t).

    Do the new rules stop you from having to have a private lifeguard in a family villa????!!!

    Ed: This law will not be retrospective and it only applies to online Airbnb-type rentals. As for the need for a CTO licence for short-term rents to tourists, it was suspended quite a few years ago.

  4. I would think the guidelines for having a property registered have not been published yet, any indication when we will find out what is required (apart from the obvious a property). Not all online rental sites are quite as easy as Airbnb or Booking.com to advertise a property for rental on, some require more detail such as safety equipment etc.

    Anyone any idea when the details of this registration will be published?

    Ed: Please see my earlier reply to Tania.

  5. Hi does anyone have a link to the application form for this please? Also does this allow apartments in complex’s to apply?
    Thanks

    Ed: It will take some time for the law and forms to be published online. You should eventually be able to find them on cylaw.org.

Comments are closed.

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