The House Finance Committee discussed the renting/leasing of properties via Airbnb and other on-line services yesterday with a view to plugging loopholes in the law.
Yiannis Tsangaris, the tax commissioner, explained that the laws need to be changed in order to tax on-line generated rental income – and the first step would be to permit the relevant authority to set up a register of short-term leases.
Meanwhile two draft bills were discussed by the Committee:
The author of one of the bills, DISY MP Averof Neophytou, said that law must require the owners of properties who rent them out via Airbnb and other on-line services to register those properties with the authorities; owners who failed to register would be held responsible; a fine of €5,000 was suggested.
Mr Neophytou pointed out that single day leasing is illegal.
A second bill, proposed by EDEK MP Elias Myrianthous, would enable properties that are not currently registered with the Cyprus Tourism Organisation (CTO) to be registered and regulated.
Greece introduced legislation a few months ago to tax annual rental income: 15% on income up to €12,000; 35% for income between €12,000 and €35,000; and 45% on income above €35,000.
Similar legislation has also been introduced in the Netherlands, Britain, Germany, Spain and other European countries.