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Short-Term Rental – Lucrative but Regulated
Airbnb/Booking.com booming with 3.5M+ tourists yearly. Returns 4-7% gross. But clear rules since 2019 and new tax framework since 2026 reform.
CTO Registration – Mandatory
Every holiday rental must be registered with the Cyprus Tourism Organisation. Application: ownership proof, floor plan, photos, fire safety, on-site inspection. Processing: 4-8 weeks. Minimum standards: AC, hot water, smoke detectors.
What surprised us: how helpful Cypriots are if you ask nicely.
– Tenant from Nuremberg, in Limassol since 2023
Tax Treatment Since 2026
SDC on rental income abolished. Only income tax (0-35%). 20% flat wear-and-tear deduction or actual costs. VAT registration required above €15,600 turnover (9% reduced rate for tourism).
Via a Limited Company
Above ~€30,000 annual income almost always worthwhile: 15% corporate tax often lower than personal rate. Below: personal taxation simpler. CMC provides individual calculations.
Practical Tips
Special short-term rental insurance €200-500/year. Property management: 15-20% of income. High season April-October. Check municipal regulations. Reviews decide your success.
Airbnb Short-Term Rental in Cyprus
Topics: Short-Term Rental – Lucrative but Regulated, CTO Registration – Mandatory, Tax Treatment Since 2026
CMC Practical Tip
Practical Tips Special short-term rental insurance €200-500/year.
Frequently Asked Questions
Yes – CTO registration mandatory. CMC assists with application.
Since 2026: only income tax (0-35%) on profit. SDC abolished. 20% flat deduction or actual costs.
Above ~€30,000/year almost always. CMC provides individual calculations.
Many leases prohibit it. Without landlord consent you risk termination.
How CMC Supports You
At CMC Family Office Group, we are here for you – not only for tax and legal questions, but also for all practical topics of everyday life in Cyprus. Our team in Larnaca and Pafos knows the local conditions first-hand.
As your local contact, we handle: company formation and management, tax advisory and Non-Dom applications, ongoing bookkeeping and tax returns, support with authorities, and referrals to estate agents, lawyers, doctors and tradespeople.