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Applying for a short term rental licence in Cyprus

February 3, 2022 by admin

How do I apply for a short term rental license in Cyprus

As new laws become applied in Cyprus it has left a lot of short-term rental owners confused about the license they need to apply for. It has also left people confused about how to apply for a rental license in Cyprus. We can help any owner that needs our assistance in the Ayia Napa, Protaras, Kapparis, Paralimni, or Pernera areas to obtain the license. If you have your deeds already we can help with all other areas of Cyprus such as Paphos, Limassol, and Nicosia.  If you need help, just get in touch on spotonvillarentals@gmail.com and we would be happy to help.

It’s as easy as 1,2 3 or so they say 😉

There are more regulations for holiday rentals that were recently announced.

Self- Service (Sharing Economy) Accomodation Establishments

On 17th January 2020, a bill was passed and the 2019 Law (N. 34(I)/2019) states that they will regulate the establishment and operation of hotel and tourist accommodation establishments (“Basic Law’) by adding provisions for the creation of a register for self-service accommodation establishments.

There are 3 categories that you can choose from. In most of the cases in the southeast coast of Cyprus, you would be applying for furnished residences or apartments as they are located in complexes of detached properties. However, if you have an individual plot of land with a villa it would come under the first option “Furnished Villas”

  • Furnished Villas – With direct and independent external access, privacy and autonomy of the land and building. Includes and exclusive landscaped garden.
  • Furnished Residences (Townhouses) – Located in a row or a complex of detached houses with autonomy. Private, shared or public external access and privacy (without shared staircase)
  • Furnished Apartment – Used as a separate, complete and independent unit (as defined by the Immovable (Tenure, Registration & Valuation) law.

Maximum Capacity

You can apply for up to 5 bedrooms (10 people)

Apply as an operator or owner

Someone can apply on your behalf, but most of our owners we are assisting with applying for an owner license that way you are not committed to anything long term (each license is for 3 years) and you have the freedom to make changes to your management company as you see fit.

1

Deeds or Planning Document

If you have your deeds you can go on to stage 2… YAY! If not we need to get a document from the relevant office in town that you will attach instead. The good news is that it isn’t hard to get, if you are not in the country we can help you attain this document. It costs about 26euros to get the document and once we submit the forms we usually get it within a week. Once you have this document it will provide you with the information you need for the registration document which is the PLOT NUMBER and PLANNING PERMISSION DATE.

You will submit this document as a PDF as part of the application process.

If you would like us to help you with this, please contact us on spotonvillarentals@gmail.com

2

Applying for the license form

Follow the steps on the form on the Cyprus tourism website (just click the link it will take you to the form). Before you start, you will need to have:

  1. A PDF version of your passport
  2. A PDF version of your deeds (first page) or planning document (from step 1)
  3. A PDF version of your electric bill

You will need your home address and contact number and email. You can find the address of your rental property from your electric bill and the premise ID is located on the left side of the bill. If you are unsure you can ask us for help.

Once you get to the bottom there is 3 boxes for inserting your PDFs and then you print the application to sign and submit that as a PDF as well.

That’s it… Sit and wait for your liscence. We have been told it can take about 2 months to come through. Please also keep an eye out in your junk items.

3

Register for a tax number

Once you have applied for a license you will need to get a tax number in Cyprus* See more information on this here.

Try not to worry, it really isnt as bad as it seems with regards to TAX and VAT

I am not a specialist on this subject but registering with the Cyprus Tax Authorities is mandatory, their position is that any rental income from immovable property in Cyprus they have taxing rights on it regardless of where you declare your tax. Cyprus Tax Year is January 1st to December 31st and you will submit your tax form even if your income is lower than 19,500 euros, you just wouldn’t pay tax in that scenario.

The starting point for paying income tax in Cyprus is when profits exceed €19,500 pa and the VAT threshold starts at €15,600 turnover. Most owners will not have any issues with this, however, if you are over the VAT threshold you would have to apply for a VAT number. Should your rental income exceed these figures and you pay Cypriot tax it can be offset against UK tax as double taxation rules.

As each owner will have different questions, we are happy to put you in touch with an amazing accountant who will help answer specific questions. We can also help you apply for your Tax number, it’s really not that complicated.

How to use your license

  • You should use it in any advertisement that you put out, whether that be on Facebook, a 3rd party site, or printed it has to have your license number attached.
  • it’s a good practice to have the number displayed at the property with all the relevant safety information
  • Must not advertise any false or misleading information
  • The registration number must appear on relevant transactions/rentals
  • The operator can be a natural person or company and the registration permit will be issued in their name
  • Subletting is not allowed. It must be rented as a whole unit, not by bedroom

We are happy to help, so please do ask if you need help.

spotonvillarentals@gmail.com

tel. 0035799780736