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A very interesting article

Source - -  Cyprus International Residents Association

Renting your property?

If you are renting your property in Cyprus there are a number of issues that you MUST be aware of.

The following article is well detailed and will give you a good idea about long and short term property rental.

In addition to this though please be aware that if you are deriving an income from your property you MUST declare this as the penalties for being caught will be severe,

The rules on renting differ based on this. Non-residents cannot let their property out short-term to holidaymakers – only to Cypriot residents.
This is because, in 99% of cases, the permission you’ll have from the Council of Ministers to have bought your property will contain this as a condition.

How can you rent out your property short-term?

If you are considering renting out your property in Cyprus short-term, each individual lease would need to be longer than 30 days. Any shorter and it would be illegal. This is partly down to lack of clarity in the law. The idea is that a lease of fewer than 30 days can only be for non-commercial purposes – and there is debate around whether tourists count as domestic or commercial.

There are proposals underway to introduce a new registration scheme, whereby homeowners could register and get approval from the CTO, or Cyprus Tourism Organisation. Make sure to follow Cyprus Property Guides to stay up to date with the situation.

For the moment, registration comes under the Hotel and Tourist Establishments Law and Regulations. These state that a resident can obtain a licence, but it’s a difficult process. You’ll need to submit the following details to the CTO:
• The property’s building permit
• The property’s title deeds
• The property’s architectural plans

You will see plenty of Airbnbs rented out in Cyprus, but do remember that it is illegal. There is a maximum fine of €512 and imprisonment up to six months.

What about renting out your property in Cyprus to locals long-term?

Cypriot residents can rent their properties as domestic residences to other Cypriot residents. This is a popular option among many local families. Almost 19% of Cypriot households rent, rather than owning their own home.
It is advisable to use a local lawyer and certified translation, so that your contract can be properly drawn up in Greek.
Note that you must draw up any tenancy of longer than one year in the presence of two witnesses. There are no particular legal requirements as to what you should include in a lease agreement. Generally, it makes sense to have both parties’ names and contact details, the amount of rent, due date and duration of the contract.

What kind of lease duration can you have if you’re renting out your property in Cyprus?

Open-ended leases are illegal in Cyprus, according to a Supreme Court ruling. If you do use an open-end lease, it’ll be automatically considered as periodic.
In terms of lengths of periodic tenancies, there are no restrictions. Likewise, there are no rules on deposits. Customarily, it’s around one or two months’ rent. It’s not common to have a guarantor.

What is a statutory tenant?

You’ve probably heard this term if you’re looking into renting out your property in Cyprus. This applies only to properties covered by the Rent Control Law and built before 31/12/1999. The law was originally put in place to protect refugees from Northern Cyprus and makes eviction difficult.

If you end the tenancy but the tenant decides to stay, they become a statutory tenant. They still have to pay rent and abide by all conditions of the tenancy apart from the lease period. You can only, however, make them leave if the rent is 21 days in arrears, you’re about to move in yourself or you’re going to demolish/substantially change the building.

courtesy of property guides.com