Tourists in Cyprus are turning in growing numbers to short-term rentals, with the number of registered properties swelling sixfold in under three years, prompting authorities to push for tighter regulation, new EU-wide data rules, and stricter tax compliance.

According to figures submitted by the Deputy Ministry of Tourism to Parliament, an estimated 12,000 to 13,000 units in the free areas of the Republic are currently offered for short-term rental.

Yet, only 8,375 of these have secured official registration, a legal requirement since July 2021. These registered properties offer a total of 36,784 beds, up from just 1,545 units in mid-2022.

Data shows a steady upward trend that by April 2023, 4,765 accommodations had joined the registry, offering 21,636 beds.

That figure climbed to 7,001 by April 2024 and reached 8,375 units by mid-May 2025, despite a slight drop in bed numbers compared to February.

Paphos and Famagusta remain the frontrunners, accounting for over two-thirds of registered listings.

In Paphos alone, 3,957 units offer 17,802 beds, followed by Famagusta with 1,702 properties and 8,728 beds. Larnaca hosts 1,237 registered accommodations, while Limassol and Nicosia trail with 1,076 and 403 respectively.

Although thousands of rentals have secured licences, the Deputy Ministry is still processing 1,565 pending applications.

Of these, 952 are awaiting additional documentation or fee payments, and 611 remain under initial evaluation. Taken together, active and pending registrations push the total past 10,000.

Under current law, owners and managers can only advertise or lease these units if they are listed in the official registry and display their registration number in all ads and transactions.

Online platforms such as Airbnb and Booking.com are also required to ensure compliance, with unregistered listings subject to removal and financial penalties.

Meanwhile, authorities are stepping up enforcement. The Deputy Ministry said 52 complaints have been lodged against unlicensed operators since inspections began.

Simultaneously, the Tax Department has launched targeted audits to ensure compliance with VAT (9 per cent), income tax, the General Health Insurance Scheme, and the defence contribution.

The Ministry also sends biweekly email alerts to hosts whose registrations are set to expire within 70 to 90 days, urging them to renew on time to avoid penalties.

At a legislative level, the parliamentary Commerce Committee is examining a new bill that aligns national practices with an incoming EU regulation set to take effect on May 20, 2026. The regulation mandates the collection and sharing of detailed data on short-term rentals across member states.

It obliges platforms to submit monthly or quarterly reports to national authorities, depending on their size, and requires landlords to declare their registration numbers and property details.

The Deputy Ministry of Tourism will serve as the supervisory authority, tasked with enforcing data registration compliance and issuing penalties for violations.