The Attorney-General’s office has rejected a proposal to limit how many short-term rental properties a person or company can register in Cyprus. However, discussions on the topic are still ongoing.
The proposal was part of an effort to regulate the fast-growing short-term rental market, including properties listed on platforms like Airbnb. The deputy tourism ministry suggested allowing each person or company to register only two properties in the self-catering accommodation register.
The plan became public after a parliamentary discussion on February 18, where Deputy Tourism Minister Costas Koumis confirmed that a proposed law change had been sent to the Attorney-General’s office. This change aimed to make registration mandatory for all short-term rental properties before they could be rented out or advertised.
Later, Koumis explained on state radio that the proposal was meant to prevent large-scale short-term rental businesses from avoiding hotel regulations. He said many investors, mostly foreign, were buying multiple properties, registering them as short-term rentals, and operating them without following the same rules as hotels. This, he argued, created unfair competition in the tourism industry.
Right now, an investor can buy 10 to 12 apartments, turn them into short-term rentals, and compete with hotels without facing the same rules. The government had hoped that limiting the number of properties a person could register would help stop this practice.
The proposal also included new penalties for violations, which fall under the government’s authority and do not require consultation with those affected.
Even though the cap was rejected, the issue is still being discussed. The house commerce committee will review broader rules for short-term rentals, including new EU regulations on the sector.
