Cyprus urged not to follow Barcelona’s rental restrictions

The need for a rational regulatory framework for short-term rentals was the central focus of a recent meeting between the Cyprus Property Developers Association and Kyriacos Hadjiyiannis, chairperson of the house committee on energy, trade, industry and tourism.

According to a statement issued by the association, the meeting was attended by the association’s chairman Yiannis Misirlis, board member Nicolas Karoullas, and general director Mersina Isidorou.

During the meeting, Misirlis underscored the “significant contribution that short-term rentals make to the Cypriot economy and tourism sector“.

He referenced Barcelona as a frequently cited example in the ongoing debate around rental platforms, but argued that the comparison to Cyprus is misleading.

“Barcelona faces a serious problem of overtourism, whereas our country is actually striving to increase tourist arrivals and strengthen its competitiveness” he said.

He added that the restrictions imposed in Barcelona did not prohibit short-term rentals outright, but instead introduced regulatory oversight.

Speaking further about the economic benefits of short-term rentals, Misirlis warned that any prohibitions would have multiple adverse effects.

“A ban would damage the tourism sector and reduce the competitiveness of the Cypriot tourism product” he said.

He also stated that such a move would “deprive ordinary citizens of the opportunity to earn additional income at a time when rising prices are burdening households”.

Misirlis said that “related professions, such as electricians, plumbers and cleaning service providers, would also be affected, as would rural communities that depend on non-hotel accommodations to attract visitors”.

“Tourists who stay in such rentals often spend significant amounts at local businesses, including restaurants, cafes, shops, entertainment venues and tourism services, directly supporting the local economy” he said.

In light of these concerns, Misirlis emphasised the need for a “modern and rational regulatory framework that ensures fair competition and tax compliance“.

Finally, the Cyprus Property Developers Association assured Hadjiyiannis of its “readiness to contribute through its proposals and positions to the creation of a comprehensive and effective regulatory model that serves the interests of the Cypriot economy, citizens and property owners”.