Calls for regulatory overhaul of short-term rentals in Cyprus

The Cyprus Tourism Enterprises Association (STEK) has renewed calls for a comprehensive legal overhaul of the short-term rental sector following a critical Audit Office report. Current data indicates that out of 12,000 to 15,000 properties listed online, only 8,500 hold an official license from the Deputy Ministry of Tourism. Association president Konstantinos Karakontis reported a 10 to 15 percent decline in both occupancy rates and prices for the current season compared to last year. Concerns were heightened following the collapse of a building in Yermasoyia on April 11, 2026, which reportedly contained unlicensed short-term rentals. STEK proposes implementing systematic inspections, mandatory display of registration numbers, and real-time connectivity between the state licensing registry and platforms like Airbnb and Booking. The association argues that inadequate enforcement creates unfair competition, negatively impacts the housing market, and threatens visitor safety. The Deputy Ministry of Tourism is currently preparing a legislative reform aimed at addressing these systemic weaknesses.