Airbnb in Cyprus – Media, Telecom, IT, Entertainment

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Airbnb in Cyprus

Airbnb is a popular home registration, search and rental website, which was founded in August 2008 and quickly achieved great success. It is an electronic platform that connects the host and the guest, while being responsible for the execution of the reservation process. This new way of renting accommodation has become widespread not only among young people, proving that many prefer this mode of renting accommodation rather than the traditional way. Its name is an acronym of the original name of Air Bed and Breakfast.

Cyprus now legally establishes the operation and control of these Airbnb? Type accommodations. In particular, on February 7, 2020, the new procedure was published in the Official Gazette of the Government of the Republic of Cyprus, and consequently the Regulation on the Establishment and Operation of Hotels and Tourist Accommodation (as amended) Law of 2020 (Law N.9 (i) / 2020) has been put into force, which should be read in conjunction with the Regulation of November 2019 relating to the creation and operation of hotels and tourist accommodation (here -after “the legislation”) and regulates the permits and specifications of the Airbnb type – accommodation, which until now fell outside the scope of existing Cypriot law.

In addition, according to this legislation, anyone who owns a home and is interested in renting it by the day is now obliged to register the property in the register of independent housing. The most important condition for the aforementioned registration is that the owner or manager of the accommodation must be registered with the tax office (i.e. obtain a tax or VAT number, as applicable).

This process is very important for the local economy and it is believed that it will restore some order to the lack of control in this area that has prevailed in the past.

Rental conditions for seasonal rental accommodation

  • Self-catering accommodation must have the characteristics and specifications of a holiday residence and / or a furnished private holiday villa and / or a private residence.
  • Self-catering accommodation must be registered in the register of self-catering accommodation kept by the Ministry of Tourism.
  • The Gîte must be ready to operate at the time of registration and its registration permit must be renewed in accordance with the provisions of the law.
  • The owner and / or beneficiary user, referred to as the owner of the business, (with the approval of the owner), can advertise and / or rent and / or rent self-catering accommodation which is registered in the self-catering accommodation register. Accommodation and must have received a Registration Number which is stated in the advertisement and / or promotion of said accommodation, as well as in all relevant transactions.
  • Self-catering accommodation that operated before the 2020 Regulation on the Establishment and Operation of Hotels and Tourist Accommodation came into force must comply with this law within a 2-year grace period. It is also specified that after the expiration of this “transitional period of 2 years”, it is forbidden for the owner and / or the supplier of electronic advertising platforms to advertise and / or display an accommodation. which has not received a Registration Number.

Creation of a register of independent accommodation

The Ministry of Tourism maintains a register in which all self-catering accommodation registered in the Republic is registered. The owner or beneficiary user or business owner, having the owner’s approval and / or the necessary authorization, must submit a request to the Ministry of Tourism in accordance with the type of accommodation as determined by the Ministry of Tourism , as well as the specified registration fee. by category of self-catering accommodation and a declaration, in which he must declare the following:

  • Registration with the tax authorities (tax or VAT identification number of the owner or administrator, as provided for by the legislation in force);
  • The relevant details of the self-catering accommodation as well as its minimum technical and operational specifications;
  • Insurance coverage of the Gite against all risks, including fire and civil liability;
  • The Deputy Minister of Tourism, within two (2) months from the date of filing of the declaration, examines the request and informs the applicant of the approval or rejection of his request;
  • By registering in the register of independent accommodation, the Ministry of Tourism issues a special logo and registration number that are displayed and declared in all transactions and, at the same time, the first registration permit is issued and is valid for three (3) years from the date of issue;
  • The registration permit is renewed every 3 (three) years at the request of the owner and / or the beneficiary user or the merchant having the owner’s approval, and / or the necessary authorization, and must be deposited in the three (3) months before the expiration of the existing license and by registering in the register of independent accommodation, the Ministry of Tourism is authorized to use the information concerning the property for statistical purposes or to promote the tourist infrastructure of the country.

In addition, the Deputy Minister of Tourism has been empowered to carry out inspections of the accommodation, at his discretion, in order to verify whether the property registration permit is still valid and, if so, whether the terms of the permits are respected by the owner of the accommodation.

The categories

Self-catering accommodation registered with the Ministry of Tourism, and therefore legally available and rented, is divided into the following three categories on the basis of the legislation in force:

  • Furnished Villas for Tourists: This includes furnished villas which have independent and direct exterior access, privacy and landscaped garden belonging exclusively to the owner.
  • Furnished Tourist Homes: This includes furnished houses in a row or in a complex of single-family homes that have stand-alone operation, private, shared or public exterior access and privacy. This category does not include furnished houses or apartments for tourists in apartment buildings or areas with a common staircase, as independent access and privacy are not guaranteed.
  • Apartments: This includes apartments which are a unit as defined in the provisions of the Real Estate Act (occupancy, registration and evaluation). It should be noted that under the above legislation, a unit means “a floor or a section, or a floor, a room, an office, an apartment or a store or any other part or space of a building. common which can be conveniently and comfortably occupied and rented as a complete, separate and independent unit for any use for which a building permit has been obtained ”.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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