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Holiday Rental – Returns Under Palm Trees
Buy, use in winter, rent in summer. 4 million tourists/year, long season (Apr-Nov), €50-200/night. But: taxes, permits, management make the difference between good investment and expensive hobby.
Numbers and Returns
Apartment (coastal): €120,000-200,000, income €10,000-18,000/year. Villa with pool: €250,000-500,000, income €20,000-40,000. Gross yield: 4-8%.
This was exactly our experience: 4 million tourists/year, long season (Apr-Nov), €50-200/night. But: taxes, permits, management make the difference between good investment and expensive hobby.
– Tenant from Hamburg, in Nicosia since 2024
Taxes and Permits
Rental income taxed as personal income (0-35%). SDC on rentals: abolished since 2026 reform! VAT: 9% on short-term. CTO license required. CMC assists with applications.
Who It's For
Ideal: 50% self-use + 50% rental. Less ideal: pure investment (management burden, no higher return than long-term rental). CMC tax planning: right structure reduces tax 30-50%.
Holiday Home in Cyprus as Investment
Topics: Holiday Rental – Returns Under Palm Trees, Numbers and Returns, Taxes and Permits
CMC Practical Tip
4 million tourists/year, long season (Apr-Nov), €50-200/night.
Frequently Asked Questions
Gross 4-8%. Net 3-6%. Cyprus's lower taxes improve the result.
Not mandatory. Airbnb (highest occupancy, VAT-liable). Local agency (less work, 20-25% commission). Long-term rental (lower return, minimal effort).
Yes – CTO license. Requirements: minimum standards, AC, fire safety, insurance.
Depends on total situation. Ltd: lower tax on rental (15% vs up to 35%). But: higher admin (audit, bookkeeping). For properties €300,000+: Ltd often better. CMC calculates individually.
How CMC Supports You
At CMC Certus Management Consultants, 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.