Cyprus landlords weigh long-term rents against holiday lets
Rising residential rents and tighter tax rules are pushing some owners to reconsider short-term holiday letting, with new figures showing conventional tenancies gaining ground.
Landlords across Cyprus are re-examining whether holiday-style rentals still pay off, as higher long-term rents and stricter tax treatment shift the arithmetic. According to the RICS Cyprus Property Price Index, produced with KPMG, apartment rents rose 7.36 per cent year-on-year in the second quarter of 2026, while holiday apartment rates grew 6.43 per cent.
Advertised rents from Bazaraki for January to August 2026 put Limassol apartments at an average €1,716 a month, ahead of Paphos at €1,131, Larnaca at €905 and Nicosia at €734. Tourist arrivals for January to September 2026 reached 3,401,538, down 5.6 per cent on the same period a year earlier, though September set a record at 580,889.
Marinos Kyneyirou, president of the Cyprus real estate agents registration council, said in July that softer tourist numbers had already led some owners to switch to conventional tenancies. Since July 1, 2026, rent for property in Cyprus must be paid by bank transfer, card or another recognised electronic method, and the special defence contribution on rental income was abolished at the start of the year.
What it means for residents
The shift matters most for tenants hunting a stable home and for owners doing the sums on their own property. A dependable twelve-month lease now competes closely with holiday letting once platform fees, cleaning, utilities and empty nights are counted.
- Tenants: more owners choosing long-term leases could ease pressure on the limited supply of rental homes, though average asking rents in Limassol remain steep.
- Owners: compare net income after running costs rather than headline nightly rates, and remember that rent must now arrive through a bank transfer or card.
- Paperwork: the special defence contribution on rents is gone, but income tax and the 2.65 per cent health system contribution still apply under the usual rules.
This text is written from the source article and is not a translation of it.
