The article I published on 24 November ‘How to get a license to rent your property‘ raised a number of questions from readers regarding the law for those wishing to rent their property as self-catering accommodation and short-term holiday rentals to obtain a license.
Once again, I’m grateful to Lyn Hill (who has obtained a license to rent his apartment in Paphos) and his legal team for answering the following questions:
Q. Does the legislation draw a distinction between short and long-term rentals? If it does where is the line drawn? To me this would be difficult, if the answer is that there is no distinction then so be it.
A. There is no clarification as to the amount of time that a property can be rented. However, the legislation for self-catering accommodation refers to short term stay and anything other than that, for example permanent residence, does not fall within the scope of the Law N.34(I)/2019. If the intention of the tenant is to use the property as their residence until they find another property, then different provisions of another Law apply.
Q. Does the legislation apply to owners of Self-Catering accommodation in Cyprus regardless of their nationality?
A. Yes, that is correct. The Law applies irrespective the nationality of the owner of the property.
Q. The legislation is intended to regulate accommodation occupied by tens of thousands of foreign holiday tourists who visit Cyprus each year. But was it intended to apply to the likes of:
- A Cypriot couple staying in Self-Catering accommodation whilst the save to buy their first home?
- Individuals staying at student lets whilst studying for their degree?
It seems to me that the answer may depend on the nature of the letting/the reason for occupation but we are not sure.
A. Yes, that is correct. The intention of the tenant is important here. For example, if a couple rents a property on an annual basis to use it as their permanent residence, then a different law applies.
Q. Take the situation where a person has eleven properties that are all rented long term. The answer to the first two points above will influence the answer to this question. But from a legal point of view all eleven would be classified as a unit so would need to be registered rather than a block registration for all properties?
A. If they are rented for touristic purposes then yes, the license for self-catering accommodation is required.
Q. There is also ‘spitaki’ to consider – the small house people build within the boundaries of their property for their children and newly-weds. Once the children leave, can the ‘spitaki’ be rented without the need for a license?
A. The answer it that the Law for Self-catering accommodation does not apply here since it needs to be independent premises for the provisions to apply. For example, a different electricity supply etc.
Q. Can I apply for a license on the Internet or do I have to apply by post?
A. Yes, you can apply for a license to rent your property online. You will find details of the application process, the information required and the application form at Grant of Special Label and Registration Number for Self-Service (Sharing Economy) Accommodation Establishments.
Does anyone know exactly which documents need to be produced to apply for a license?
In addition to a Tax Registration Certificate, you will need the approved building permit or the planning permit.
I suggest you read Law 34 (I)/2019 using Google Chrome or another browser with translation facilities as there are other conditions that the rental property must meet before a license is granted.