Short-term Rentals Double to 9,153 Properties — Cyprus Still Fighting Illegal Listings

A boom in the Cyprus property market meets a regulatory headache

The Cyprus property market is seeing a swift expansion in short-term rentals, but the growth is creating headaches for regulators and buyers alike. New data from the Deputy Ministry of Tourism shows that 9,153 registered short-term rental homes are operating across the island, offering 39,218 beds — figures that have nearly doubled in two years. Our analysis finds this mix of rapid legal growth and persistent illegal supply is reshaping investment risk and planning assumptions for anyone buying to rent in Cyprus.

Short, sharp headline numbers catch attention, yet the details matter if you are an investor, a buyer considering a holiday-let, or an expat tracking housing availability. Below we break down the figures, explain the enforcement response, outline the new rules due in May 2026, and translate what all this means for buyers and investors who want to operate lawfully and profitably.

What the official numbers say: rapid registration gains

The Register of Self-Catering Accommodation shows how quickly the short-term rental sector has expanded:

• 9,153 registered short-term rental properties in Cyprus today, offering 39,218 beds.
• In April 2023 the island had 4,765 registered properties with 21,636 beds; registrations have almost doubled since then.
• Government-commissioned research suggests the real sector could be around 12,000 properties in total, before accounting for rural and agro-tourism accommodation.

The growth is concentrated in a few districts. Paphos leads with 4,231 registered properties, followed by Famagusta 1,791, Larnaca 1,407, Limassol 1,267 and Nicosia 457. These figures reflect stronger demand, and a greater effort by some property owners to register and comply with rules. That said, the official numbers probably understate the true scale of short-let activity on the island.

Illegal rentals remain a stubborn problem

Growth in legal listings is encouraging, but the authorities are clear that illegal listings have not disappeared. Since the start of 2025 the Deputy Ministry of Tourism has logged 81 complaints about unregistered short-term rentals. Enforcement now combines on-the-ground inspections with online monitoring of listing platforms.

Why illegal rentals persist:

• Financial incentive: short-term letting often generates higher gross income than long-term leases, encouraging owners to skirt registration and tax rules.
• Detection limits: platforms host thousands of ads and monitoring every listing requires significant resources.
• Fragmented supply: many listings are private flats and villas that change hands frequently, complicating tracing and enforcement.

The Ministry says that cases with sufficient evidence are being referred to the Legal Service for prosecution. Officials are pursuing a tougher stance to protect tax revenue and ease pressure on the housing market. From a buyer or investor perspective, this means there is now a higher compliance risk attached to short-let investments that are not properly documented and registered.

The incoming regulatory change: what will change on 20 May 2026

Cyprus has approved a 2025 Amendment Law to align its rules with EU Regulation 2024/1028. The new framework comes into force on 20 May 2026 and is designed to increase transparency across Europe’s short-term rental market. Key elements that will affect hosts, platforms and investors include:

• Standardised registration rules for hosts and properties, making local requirements more uniform.
• Improved reporting and enforcement procedures to speed up investigations.
• An obligation for platforms such as Airbnb and Booking to share data with authorities.
• A unified system to block illegal listings across channels.
• Consistent penalties for rule-breakers across jurisdictions.

Regulators believe the EU-wide measures will provide better data and stronger tools to curb illegal activity and protect honest operators. From an investor standpoint, the shift means that platforms will be less able to act as opaque intermediaries; data sharing will make it easier to verify whether a listing is registered and compliant.

What the new rules mean for buyers and investors

We think the rules will change the risk-reward calculation for anyone buying property to let short-term in Cyprus. Here is a practical checklist of what to consider now:

• Registration first: ensure any short-let property you buy is registered on the Register of Self-Catering Accommodation or can be registered quickly.
• Documentation audit: require sellers to provide registration numbers, tax compliance certificates and municipality approvals where applicable.
• Platform risk: understand that platforms will be required to share listing data from May 2026; listings without valid registration could be delisted or blocked.
• Tax exposure: illegal listings reduce public revenues and increase enforcement attention. Expect stricter tax audits and potential retroactive penalties if rules were breached.
• Local counsel: retain a local property lawyer or tax adviser to vet the rental permissions and to check municipal rules, which can vary.

Short-term yields may look attractive on paper, but you must factor in compliance costs, potential downtime if listings are suspended, and the possibility of fines. If you plan to buy in Paphos, where nearly half of registered listings are located, check local planning controls and the capacity of municipal services, which may differ from coastal resort town to town.

Where supply and demand meet: regional implications for housing and prices

The growth in short-term lets affects the wider property market. Tourism-driven short-lets inflate demand for holiday accommodation and can divert units from the long-term rental pool, contributing to housing pressure for residents. Cyprus tourism officials explicitly warn that illegal short-term rentals "worsen housing shortages and place extra strain on the already pressured property market."

Market implications include:

• Localised shortages: areas with high concentrations of short-lets can see reduced availability for long-term rental tenants, pushing up rents.
• Price segmentation: in tourist hotspots short-term rent potential can inflate purchase prices, while less-touristed districts may not share the same premium.
• Planning friction: municipalities are increasingly under pressure to manage the trade-off between tourism income and resident housing needs.

For investors this means returns are not uniform across the island.