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Cyprus: The Law Office of the Republic of Cyprus has rejected a proposal to limit the number of short-term rental properties that an individual or company can register.
Despite the decision, discussions on stricter short-term rental rules are ongoing, with the House Commerce Committee set to review new measures in line with upcoming EU regulations.
The Deputy Tourism Ministry had proposed capping STR registrations at two properties per owner to prevent large-scale investment purchases. The goal was to stop investors from acquiring multiple properties and running them as short-term rentals without facing the same regulations as hotels.
Speaking in parliament on 18 February, Deputy Tourism Minister Costas Koumis confirmed that the government had submitted an amendment requiring mandatory registration for all STR properties before they could be advertised or rented.
Koumis warned that unregulated STR growth was fuelling “para-hotel operations”, where investors buy 10 to 12 apartments, convert them into holiday rentals, and compete directly with hotels without adhering to the same tax and operational rules. The proposal also involved penalties for investors in breach of the new regulations.
Currently, there is no official limit to the number of properties that short-term rental owners can own in Cyprus. However, property owners must comply with regulations and obtain required permits or licences. Those who do not comply with current laws may face penalties including fines, VAT charges or having their listings removed.
With no cap in place, investors and property managers in Cyprus can continue expanding STR operations for now.
The debate mirrors similar moves across Europe, where national and regional governments are addressing overtourism concerns by limiting the expansion of short-term rentals.
However, the issue is expected to remain under review. The House Commerce Committee is set to review wider regulations on short-term rentals, including alignment with an upcoming EU directive on the sector.
