Cyprus updates Airbnb law to align with EU framework

Nigel Howarth
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Cyprus updates Airbnb law to align with EU framework

The Cyprus House of Representatives has unanimously approved amendments to the Law on the Regulation of the Establishment and Operation of Hotels and Tourist Accommodation, ensuring it aligns with a new EU framework for short-term rental services such as Airbnb and Booking.com.

Unified EU framework for short-term stays

The new EU framework aims to bring consistency across all EU Member States. It sets out how data should be collected and shared between property hosts, online platforms, and public authorities — making the short-term rental market more transparent, safe, and reliable for both guests and hosts.

What the new rules mean

The updated law introduces several important changes:

  • Clearer registration rules for property owners and hosts offering short-term stays.
  • Visible registration numbers on all listings, helping travellers identify legitimate accommodation.
  • Better data sharing between online platforms (like Airbnb) and public authorities to support tourism planning.
  • Easier access to reliable statistics for researchers and tourism professionals.
  • Penalties for those who fail to comply with the new requirements.

With more accurate information available, visitors will find it easier to book licensed, safe, and transparent stays, while hosts and local communities benefit from fairer competition.

For the tourism industry, these updates also mean access to more dependable data to support strategic planning, destination marketing, and sustainable growth.

The new EU-aligned framework officially comes into force on 20 May 2026, giving hosts, property managers, and platforms time to adapt their systems and ensure full compliance.

Deleted files recovered in new “Golden Passport” investigation

Nigel Howarth
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0
Deleted files recovered in new “Golden Passport” investigation

The Greek language Politis reports that a major Limassol law firm and nine of its lawyers are under criminal investigation in connection with the issue of “golden passports” to four investors – three from Russia and one from Venezuela – together with their dependants, including spouses and children.

The firm tried to cancel a search warrant executed at its offices on 8 October 2024, to prevent the Police from using evidence obtained during the investigation. (As no decision has been made regarding prosecutions, the name of the law firm and its lawyers are not being published.)

The search warrant was considered necessary after investigators from the CID Headquarters found that files and correspondence had been deleted from the firm’s central server. The deletions were discovered following the initial Police search at the offices on 5 April 2024, which was also carried out under a court warrant.

A second search warrant was subsequently issued to recover the deleted data that had not been found in April. The firm’s attempt to have this warrant cancelled was unsuccessful. On Wednesday, the Supreme Court upheld the position of Attorney-General George Savvides and rejected the firm’s appeal to cancel the search warrant.

Six criminal offences under investigation

The Supreme Court’s decision is considered crucial for the outcome of the ongoing investigations, as it allows all evidence seized from the law firm, which includes files recovered by Police experts, to be used in the case. The Legal Service will now review the evidence to determine whether criminal charges will be filed.

The offences under investigation include:

  • Conspiracy to Defraud (Article 302, Cap. 154)
  • Conspiracy to Commit Felonies (Article 371, Cap. 154)
  • Offences under the Prevention and Suppression of Money Laundering Law 188(I)/2007 (Articles 3, 4, 5, 27)
  • False Statements (Article 116(1), Civil Registry Law 141(I)/2002)
  • Failure to Comply with Regulations (Article 88, Civil Registry Law 141(I)/2002)
  • Forgery of Travel Documents (Article 89(1)(e), Civil Registry Law 141(I)/2002)

According to the Police, the alleged offences were committed from 2015 onwards.

Law firm attempted to destroy evidence

As part of the investigation, the Police secured a search order for the firm’s Limassol offices on 3 April 2024, which was executed two days later. During the search, four physical files relating to the investors’ applications were seized, along with electronic files and correspondence located on the firm’s main server. These were transferred to digital storage using keyword-based searches.

During subsequent analysis, investigators discovered that some of the electronic data appeared to have been altered or deleted. A second search order was therefore deemed necessary to recover the missing information connected to the alleged offences.

The warrant issued on 8 October 2024 specifically stated that “technology makes it possible to recover deleted or altered files from the firm’s central server through a defined procedure, allowing transfer to an external storage unit without inspecting unrelated data.”

Software restored deleted files

Using forensic recovery software, Police experts managed to retrieve crucial evidence that had been deleted from the firm’s server without accessing unrelated client files. This safeguarded legal professional privilege, ensuring that the warrant would remain valid.

The restored digital evidence has now been securely stored for further investigation and evaluation by the authorities.

Cyprus property sales rebound after August dip

Nigel Howarth
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0
Cyprus property sales rebound after August dip

Cyprus property sales bounced back in September following a modest 1% dip in August, according to the latest official figures from the Department of Lands and Surveys.

A total of 1,289 contracts of sale were deposited at Land Registry offices across the island,  representing a 15% increase compared to the same month in 2024. The strong performance keeps the market on course to achieve its highest annual total since the global financial crisis of 2007.

The figures cover a broad mix of real estate including: residential properties, commercial premises, offices, retail units, warehouses, and land. While the Department does not provide a breakdown by type, historic data indicates that residential property typically accounts for around half of all transactions.

According to the official statistics, a total of 1,289 contracts of sale were deposited in September, an increase of 15% compared to the 1,289 recorded in September 2024.

Total contracts of sale deposited – 2024/2025 Comparison (Sep)

For the first nine months of 2025, Cyprus property sales rose 13% to reach 13,173 compared to 11,634 in the same period last year, with every district reporting growth. This steady increase highlights the ongoing confidence among both domestic and international buyers.

Total contracts of sale deposited – 2024/2025 Year-to-Date Comparison

Cyprus property sales: market segment analysis

Domestic market sees broad-based recovery

Domestic buyers accounted for 60% of total sales in September, depositing 888 contracts, a 17% rise compared to 759 in the same month last year.

Despite a 16% fall in Famagusta (31 vs 37), the remaining districts all saw strong growth:

Paphos 42% (115 vs 81), Larnaca 21% (154 vs 127), Limassol 15% (290 vs 253), and Nicosia 14% (298 vs 261)

Domestic contracts of sale deposited – 2024/2025 Comparison (Sep)

Over the first nine months of the year, domestic sales rose 13% to reach 7,985 compared to 7,053 during the same period last year, with gains recorded in every district.

Domestic contracts of sale deposited – 2024/2025 Year-to-Date Comparison

Overseas buyers continue to drive Cyprus property sales

Cyprus property sales to international purchasers also remained buoyant. In September 2025, 596 contracts were deposited by overseas buyers, up 12% on the 530 recorded in September last year, with all five districts recorded increases:

Nicosia 43% (53 vs 37), Famagusta 30% (48 vs 37), Larnaca 14% (151 vs 132). Paphos 7% (198 vs 785), and finally Limassol 5% (146 vs 139).

Overseas contracts of sale deposited – 2024/2025 Comparison (Sep)

For the year to date, sales to foreign buyers rose 14% to reach 5,215 compared to 4,581 in the first nine months of last year, underscoring Cyprus’s enduring appeal as a safe and attractive investment destination.

Overseas contracts of sale deposited – 2024/2025 Year-to-Date Comparison

EU nationals show strong return to the market

Property purchases by EU nationals climbed 18% in September, with 202 contracts deposited compared to 150 last year. While sales fell in Limassol 12% (37 vs 42) and Larnaca 3% (38 vs 39), they surged elsewhere – notably in Famagusta 86% (26 vs 14) and Paphos 43% (83 vs 58).

Contracts deposited by EU Nationals – 2024/2025 Comparison (Sep)

Year to date, sales to EU nationals increased 24%, reaching 1,728 compared to 1,389 in the first nine months of last year, with all districts reporting growth.

Contracts deposited by EU Nationals – 2024/2025 Year-to-Date Comparison

Non-EU nationals maintain momentum

Sales to non-EU nationals rose 10% year-on-year in September to 394 contracts, representing 27% of the total number of sale transactions in the month.

District-level performance varied, with strong gains in Nicosia 84% (35 vs 19), Larnaca 22% (113 vs 93), and Limassol 12% (86 vs 77), offsetting declines in Paphos 9% (115 vs 127) and Famagusta 4% (22 vs 23).

Contracts deposited by non-EU Nationals – 2024/2025 Comparison (Sep)

Over the first nine months of 2025, non-EU purchases rose 9% to reach 3,487 compared to  3,192 in the first nine months of 2024, with all districts contributing to the increase.

Contracts deposited by non-EU Nationals – 2024/2025 Year-to-Date Comparison

A shifting investment landscape

Data from the Department of Lands and Surveys reveals an evolving property market shaped increasingly by international demand.

In Paphos, non-EU buyers once again outpaced local purchasers, confirming its position as a preferred destination for overseas investors and holiday-home seekers. Meanwhile, rising activity in Larnaca and to a lesser extent in Famagusta suggests a broader geographic spread of foreign investment, driven partly by regional dynamics in the eastern Mediterranean.

Market Segment Summary Analysis Year-to-Date

As the market continues its upward trajectory, 2025 is poised to be one of the most active years for Cyprus property sales in nearly two decades.

Contracts Deposited 2008 to 2025 Year-to-Date Comparison

Jointly-owned buildings: management committees & Title Deeds

Nigel Howarth
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3
Jointly-owned buildings: management committees & Title Deeds

Following my rant last week on communal fees for jointly-owned buildings in Cyprus, I’ve been contacted by several property owners facing another frustrating issue – the mistaken belief that they cannot establish management committees because they have yet to receive the Title Deeds for their properties.

In such cases, owners continue to pay regular maintenance fees to their property developers, ostensibly for the upkeep and repair of their buildings. However, many report a complete lack of transparency regarding how these fees are calculated or where and how the money is spent. Numerous owners describe the maintenance work as both substandard and overpriced compared with what friends in similar developments are paying.

In some developments, owners have reported that developers are not contributing towards communal fees for unsold units, even though the units are fully finished and ready for occupation.

Meanwhile, a few others say that individuals who obtained their homes through antiparochi agreements are refusing to pay communal fees altogether.

(Antiparochi refers to an arrangement between a landowner and a property developer, whereby the landowner exchanges land for a certain number of completed units on that land – no money changes hands.)

The law relating to management committees

Under CAP 224 – The Immovable Property (Occupation, Registration and Valuation) Law, an ‘owner’ is defined as:

“The person entitled to be registered as the owner of any immovable property, whether or not it is so registered.”

Section 38 of this law governs Buildings under Joint Ownership, setting out the rules and regulations for managing apartment blocks and communal complexes in Cyprus.

This means that even if a buyer has not yet received the Title Deed for their property, they can still form a Management Committee, provided that the building itself has been registered as a jointly-owned building with the Land Registry.

Proposed legal changes

If the revised law is approved, the requirement for registration in the Land Registry may be replaced with a simpler condition – that the building must at least have a valid building and subdivision permit.

This change would enable property buyers to establish management committees much earlier, possibly many years earlier – long before the jointly-owned building is formally registered, and Title Deeds are issued.

Jointly-owned buildings insurance

The rules concerning insurance for jointly-owned buildings are also set to change.

Under the current law:

“The Management Committee must insure, and keep insured at all times, the jointly-owned building against fire, lightning and earthquake…”

The revised law proposes the following amendment:

“The Management Committee must insure, and keep insured at all times, the jointly-owned building against fire, explosion, lightning, flood, water leakage from a tank, appliance or pipe, and earthquake…”

Additionally, the revised law will require public liability insurance:

“The Management Committee must maintain public liability insurance for a jointly-owned building, for an amount it deems appropriate.”

A new provision also clarifies that:

“Unit owners have the right to take out insurance for the contents of their individual units.”

Hopefully, the updated legislation will put an end to the arguably unlawful practice adopted by some management committees, which only insure the jointly-owned property (i.e. the parts of the building not registered as individual units) rather than the entire jointly-owned building.

Cyprus property market sees surge in resale demand

Nigel Howarth
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0
Cyprus property market sees surge in resale demand

A recent analysis by Landbank Analytics highlights sustained demand for resale houses and apartments in Cyprus during the first half of 2025.

The market remains active, with apartments dominating in transaction volume and houses achieving higher average prices, reflecting varying trends across the island’s districts.

Resale apartment sales more than double

The housing sector continues to serve as the main pillar of the resale market. Houses recorded the highest total sales value, reaching €190.3 million from 552 transactions.

Apartments followed closely with a total value of €185 million, though they represented a significantly higher number of sales (1,162), more than double the number recorded for houses.

According to Landbank, this pattern reflects strong demand for more affordable housing, with apartments continuing to attract both local buyers and investors. As in the new-build sector, these two property categories drive the resale market, confirming housing’s enduring role as a stable asset in Cyprus.

Regional trends: Limassol remains the most expensive district

The analysis reveals notable regional differences, both in transaction volumes and average prices of resales across districts.

  • Nicosia: Apartments lead with 458 sales at an average price of €143,118, while houses recorded 163 sales with an average price of €283,641.
  • Limassol: Retains its position as the most expensive district in Cyprus. Houses averaged €527,252 (122 sales) and apartments €261,378 (201 sales), illustrating strong and sustained demand.
  • Larnaca: Displays a balanced market. Apartments dominate with 220 sales at €142,161, while houses recorded 126 sales at €249,382.
  • Paphos: Apartments again take the lead, with 203 transactions at the lowest national average (€129,774). Houses averaged €386,828 (90 sales), the second-highest price after Limassol.
  • Famagusta: Recorded 80 apartment sales averaging €115,664 and 51 house sales averaging €264,039, reflecting lower prices and a moderate but consistent demand.

Resale market remains diverse and resilient

According to Landbank CEO Andreas Christoforides, “the market continues to demonstrate dynamism and diversity, with each district maintaining its own identity.”

He added that “Limassol leads in high-value properties, while Nicosia, Larnaca and Paphos experience sustained demand for affordable permanent housing and investment-oriented apartments.”

Christoforides concluded that “the resilience and adaptability of the sector offer a wide range of options across different price levels, marking a mature and stable period for both buyers and investors.”

The findings underline that Cyprus’ resale property market remains robust and multifaceted, offering opportunities for homeowners and investors alike across varying economic segments and regional profiles.

Cyprus moves to strengthen oversight of foreign investments

Nigel Howarth
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0
Cyprus moves to strengthen oversight of foreign investments

The House Finance Committee has wrapped up its examination of foreign direct investments (FDI) screening bill, paving the way for its discussion in the plenary session within the next three weeks

The legislation received broad cross-party backing, reflecting a shared commitment to safeguarding Cyprus’ economic openness while addressing national security concerns.

Committee chairwoman and Democratic Party (DIKO) MP Christiana Erotokritou said the bill was submitted on 10 July, examined from early September, and completed its committee stage on Monday. She described the legislation as a “modern framework” that combines investment attraction with enhanced security oversight.

“The Cypriot economy remains outward-looking and committed to attracting foreign investments, but with rules in place to protect the public interest and the country’s security,” Erotokritou said following the session.

Who and what does the legislation target?

The proposed framework sets out that investors from outside the European Union (third-country nationals) wishing to invest in strategic sectors such as energy, defence, health, telecommunications, and real estate will be subject to screening procedures. The aim is to protect Cyprus’ public interest and national security from potential risks linked to foreign control of critical infrastructure.

Despite some initial differences during committee discussions, MPs reached a consensus across party lines.

“With this convergence of views, the bill proceeds to the plenary with the best omens, strengthening Cyprus’ profile as an attractive investment destination, but with transparency and security,” Erotokritou added.

Alignment with EU investments screening framework

The bill brings Cyprus in line with European Union requirements for member states to implement mechanisms for monitoring foreign direct investments. The EU’s investment screening framework, introduced in 2019, enables member states to assess transactions that could affect public order or security, particularly in sensitive sectors.

As an established international business centre and financial hub, Cyprus has long attracted substantial foreign investment across multiple industries. Under the new system, investments from non-EU countries will be reviewed to determine whether they pose potential risks before being approved.

Cyprus joins other EU member states in adopting a national screening mechanism, allowing authorities to share information with the European Commission and other countries when cross-border implications arise.

The new legislation is seen as a step towards balancing openness to international investment with the need to safeguard critical assets – a balance increasingly prioritised across the EU in recent years.

(The Ministry clarified that FDIs in land and real estate are covered by the legislation only when the land and property concerned are of key importance for the use of critical infrastructure, for example: in the fields of energy, defence, water supply, communications, and others – as set out in the Annex to the Bill.)

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