Cyprus has a problem with many short-term rental homes. Both legal and illegal properties are increasing quickly. This is because many people want to rent them. The government is trying to control this situation. New laws are coming to help organize the market. This growth is also making housing shortages worse for people who live there.
Official numbers show a big rise in registered rentals. In April 2023, there were over 4,700 registered properties. Now, there are about 12,000 registered homes. This is a 92% increase in just two years. Paphos, Famagusta, and Larnaca are the most popular places for these rentals.
However, there are also many rentals that are not registered. In 2025, authorities received 81 complaints about these illegal places. This is a big worry for the government. It affects money for the state and fair competition. Illegal rentals make it harder to find homes. They also push up prices for long-term rentals. This makes housing less affordable for residents.
The Cyprus Parliament has passed a new law. It will follow new European Union rules by May 2026. These rules aim to make short-term rentals clearer. The Deputy Ministry of Tourism is checking properties. They use inspections and online tools to find illegal rentals. They are taking action against those who break the rules.
It is difficult to manage all these rentals. The number of properties is very large. However, the new law and checks should help. The goal is to find a good balance. They want to meet the demand for short stays. They also want to protect local communities and the tourism industry. These efforts will be important in the coming years.