Airbnb in Cyprus — Everything You Need to Know
In recent years, short-term rentals through Airbnb have become one of the most popular ways to generate income from property investments in Cyprus. Whether you’ve just purchased a new apartment or are exploring investment opportunities, understanding how to legally register and operate an Airbnb in Cyprus is essential.
At The Property House, we’re here to guide you through every step of the process from registration to property management and tax optimization.
How to Register Your Airbnb in Cyprus
If you own a property in Cyprus and want to rent it out on platforms like Airbnb or Booking.com, the good news is that it’s absolutely possible — and straightforward once you know the steps.
Step 1: Register Your Property
Your property must be registered as a self-service accommodation with the Deputy Ministry of Tourism. The license fee is €222, valid for three years and renewable online.
Step 2: Obtain a Tax Identification Number
Whether you register as an individual or through a company, you will need a Tax ID in Cyprus. This ensures that your rental activity complies with local tax regulations and allows you to declare your income properly.
Step 3: Partner with a Property Management Company
Most owners prefer to work with a licensed property management company that handles bookings, guest communication, cleaning, and maintenance.
You can sign an agreement for 3, 5, or even 10 years, and typically choose between two income models:
- A steady annual yield of around 6%, completely hands-free, or
- A shared revenue model, where you earn up to 10% annual yield based on your property’s performance, with profits split 80/20 between you and the management company.
Step 4: Claim Your VAT Return
After operating your Airbnb for nine months, your local accountant can help you claim back the 19% VAT paid on your property purchase. From there, your property manager will continue to handle the bookings and ensure everything runs smoothly.
Why Airbnb in Cyprus Makes Sense
Cyprus continues to attract both tourists and investors, offering high rental demand, a favorable tax system, and year-round sunshine. Cities like Limassol, Paphos, and Larnaca are particularly popular for short-term rentals, with strong occupancy rates and excellent returns.
Investing in an Airbnb property allows you to generate consistent income, build equity, and enjoy your property when it’s not rented out — a perfect balance between lifestyle and profit.