According to the CTO, 80% of tourists, visiting Cyprus, stayin hotels, 20% (about 600 thousand people) - live with relatives, friends or inrented apartments, villas, etc. On the island, short-term rental sites are moreand more popular, where housing is offered with prices lower than in hotels.The Cypriot authorities are trying to oblige the owners of the leased propertyto pay taxes.
A bill designed to regulate and tax the rental income on anestimated 40,000 short term Airbnb style properties in Cyprus should bepresented at a plenary session of the Cyprus parliament within the next twoweeks.
According to Edek MP Elias Myrianthous, one of the bill’sauthors, there are currently an estimated 40,000 accommodations across theisland being used for short-term rentals that are unlicensed and thus notsubject to the legislation governing tourist lodgings.
According to the materials of Kathimerini, all propertiesthat will be rented on a short-term basis must undergo a licensing process. Advertisingobjects on the Airbnb, the owner of the properties will be required to indicatethe license number. Potential customers will know that the object being handedover has passed the licensing process and its owner fulfills all theobligations prescribed by law. Myrianthous said that effectively the bill willprovide for the licensing of self-catering lodgings under “comparatively lessstringent procedures.”
The annual rental income exceeding 15,600 euros will obligethe landlord to pay VAT (in addition to other taxes). Annual income less thanthis amount will not be taxed.
Also, the owners of properties in complexes with a communal swimmingpool will be required to obtain consent for the short-term lease of theirproperty from all owners or tenants in the complex.
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