The office of the Attorney-General has dismissed a suggestion to restrict the number of short-term rental properties an individual or business can register in Cyprus. Despite this, discussions regarding the matter are still continuing.

This suggestion emerged as part of an initiative aimed at regulating the rapidly expanding short-term rental market, which encompasses properties offered on platforms similar to Airbnb. The deputy ministry of tourism proposed a limit allowing each person or entity to register a maximum of two properties within the self-catering accommodation register.

The public became aware of this plan following a parliamentary session on February 18. During this session, Deputy Tourism Minister Costas Koumis confirmed that a proposed amendment to the law was forwarded to the Attorney-General’s office. The objective of this amendment was to mandate the registration of all short-term rental properties prior to their rental or advertisement.

Subsequently, Koumis clarified on state radio that the proposal aimed to curb large-scale short-term rental enterprises from sidestepping hotel regulations. He pointed out that numerous investors, primarily from overseas, were acquiring multiple properties, listing them as short-term rentals, and operating outside the regulatory framework applicable to hotels. In his view, this situation fostered unfair competition within the tourism sector.

Currently, an investor has the liberty to acquire 10 to 12 apartments, convert them into short-term rentals, and compete with hotel establishments without adhering to identical regulations. The government aspired to mitigate this behavior by imposing a limitation on the number of properties one could register.

Additionally, the proposal encompassed stricter penalties for non-compliance, which are within the government’s jurisdiction and do not necessitate consultations with affected parties.

Despite the rejection of the property cap, the dialogue continues. The house commerce committee will evaluate comprehensive regulations for short-term rentals, taking into account new EU directives concerning the sector.