Cyprus’ short-term rental market is growing fast, but problems with illegal rentals refuse to go away. New figures from the Deputy Ministry of Tourism show a sector expanding at pace, while regulators continue to chase unregistered properties.
Official data shows that 9,153 registered short-term rental homes are now operating across the island, offering 39,218 beds. This marks a sharp rise in legal accommodation, yet authorities say the true size of the market is much bigger due to ongoing illegal activity.
Research carried out for the Ministry suggests there may be around 12,000 registered properties in total, even before counting rural and agro-tourism accommodation. This indicates that the short-term rental sector is larger and more difficult to control than previously thought.
Registrations almost double in two years
The Register of Self-Catering Accommodation highlights just how quickly the market has expanded. In April 2023, Cyprus had 4,765 registered properties with 21,636 beds. Today, those figures have almost doubled.
Paphos leads the island with 4,231 registered properties, followed by Famagusta (1,791), Larnaca (1,407), Limassol (1,267) and Nicosia (457). Officials say the growth reflects strong demand and a greater effort by property owners to follow the rules.
Illegal rentals remain a major concern
Despite progress in registrations, illegal short-term rentals remain a serious issue. Since the start of 2025, authorities have received 81 complaints about unregistered properties operating across Cyprus.
The Deputy Ministry of Tourism has stepped up enforcement, using site inspections and online monitoring to track down illegal listings. Cases with enough evidence are sent to the Legal Service for prosecution. Officials say this marks a tougher stance aimed at protecting public revenue and restoring order to the market.
Tourism officials warn that illegal rentals do more than reduce tax income. They also worsen housing shortages and place extra strain on the already pressured property market.
New rules aim to restore order
Cyprus is preparing for a major regulatory shift after Parliament approved the 2025 Amendment Law, aligning national rules with EU Regulation 2024/1028. The new framework comes into force on 20 May 2026 and aims to improve transparency across Europe’s short-term rental sector.
The changes will:
- Standardise registration rules for hosts and properties
- Improve reporting and enforcement procedures
- Require platforms like Airbnb and Booking to share data
- Prevent illegal listings through a unified system
- Apply consistent penalties for rule breakers
Authorities believe the new EU-wide system will give them better data and stronger tools to control illegal rentals, while allowing compliant operators to compete fairly.
As Cyprus’ short-term rental market continues to expand, officials hope tougher enforcement and clearer rules will finally bring stability to a sector that has grown rapidly — and sometimes out of control.
