Cypriot authorities are taking steps to regulate the short-term rental market

In the near future, the Parliament of Cyprus will begin consideration of a draft law, which should clarify the regulation and taxation of those properties that are listed on the Airbnb portal.

In the near future, the Parliament of Cyprus will begin consideration of a draft law, which should clarify the regulation and taxation of those properties that are listed on the Airbnb portal. At the moment, we are talking about at least 40,000 objects for which it is planned to develop a special taxation system. According to the project, it is assumed that the taxes will be paid by the owners of almost all real estate objects: apartments, flats, villas and residences. One of the initiators of the project, Elias Mirianthus, cites statistics according to which at least 40,000 objects are leased in Cyprus, intended for short-term leases, and without licenses. Also, the law is supposed to introduce characteristics that will separate the private real estate of individuals from the hotel business. In addition, the parliamentarians propose to assign individual VAT numbers to landlords whose annual rental income will exceed 15 600 euros. A special unified register will be created for real estate objects intended for short-term rent. Thus, the authorities will receive one more mechanism for registering objects to the existing registers, allowing them to register hotels and hotels. Each apartment or villa will be assigned a unique number that can be viewed on Airbnb services. This number will allow both tenants and supervisory services to immediately see whether the property listed on the portal is licensed.

Specialists in the Cyprus property market believe that such measures are being taken by the authorities in order to curb the rapid growth of rental rates. The prices for rental housing have been growing especially strongly in recent years in Limassol, where many luxury real estate objects are being built, and where infrastructure is being developed at a serious pace, which attracts large businessmen, financiers and just wealthy people from other countries. Such an influx of foreigners willing to pay high prices for housing, firstly, squeezes out local residents from the number of tenants, and secondly, it whets the appetites of landlords. Also, the authorities intend to increase budget revenues by taxing Airbnb properties.

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