Renting out a property (non-EU citizen)

[freghufe]

Dear all,

Could you please advise how a non-EU citizen can rent out their properties in Cyprus?

I've heard that it is not possible...but, at the same time, I know that many people are doing this? Do they have special permission for this?
Facts: a non-EU person has permanent residency in Cyprus, which he acquired via the investment scheme (where he lives to this today), afterwards, he acquired a 2nd property which he intends to rent out - the immigration officer has told him that there won't be any problems (orally), but the permit from the District Office says that the 2nd property is only for his personal use?

Should he try to amend the permit conditions (given that the Immigration Office doesn't have a problem with renting out) or are there any other solutions available?

Many thanks in advance!

[Nigel Howarth]

Hi freghufe

A non-EU citizen can rent out their home without permission. But if they rent it through Airbnb, they need to get a licence as described at How to get a license to rent your property.

A non-EU citizen may be allowed to buy a second home depending on its type and use (i.e. a holiday home in addition to a permanent home). However, they cannot rent it out as it has to be for their personal use.

(I would be interested to hear what happens if a non-EU citizen tries to get a licence to rent out their second home on Airbnb or another on-line rental platform.)

Regards,

[Pantheman]

.. Additionally to what Nigel stated, anyone who buys a property with the reduced 5% rate cannot let out the property as it is intended for the own permanent residence.

[J B]

(I would be interested to hear what happens if a non-EU citizen tries to get a licence to rent out their second home on Airbnb or another on-line rental platform.)

We are (and always have been) UK citizens/residents

We bought an apartment in 1996 which we upgraded for a villa in 2000
We then bought a town-house on a complex in 2007 in addition
We rented out both for holiday lets on Trip Advisor for a while, then in 2008 we decided to put the villa out for residential rental and kept the town-house for own use and holiday rental.
In the spring of 2023 we applied for a licence for holiday rentals for the town-house which was granted.

So ... that's what happened!

[Nigel Howarth]

In the spring of 2023 we applied for a licence for holiday rentals for the town-house which was granted. So ... that's what happened!

Thanks J B.

I expect you applied to the Deputy Ministry of Tourism for a licence?

That's a different government department to the District Office, which is part of the Interior Ministry.

I expect a lack of joined-up government is to blame

Regards,

[freghufe]

Thank you for your replies.

I am sorry - I am still confused: how it is possible that I am allowed to rent my 1st property and I am not allowed to rent out my 2nd property (for all cases I mean a long-term rental).

In both occasions the relevant wording is displayed on the Council of MInister Permit:

"The permit for acquiring the aforementioned property is granted on the condition that it will be used for owner-occupation. No other right is granted to you for the use of the aforementioned property, except for that of owner-occupation"

As far as I know, 99% of foreign purchasers have the same restrictions (as third-country citizens). But, in practice, many of them rent their properties nonetheless.

Does it mean that Cypriot authorities interpret renting as owner-occupation, or does it just mean that (for now) the government is not bothered with this situation?

Thank you all in advance!

PS

JB, since your properties were purchased before Brexit, I suppose that you didn't have to obtain a special permit from Council of Ministers. That is why (at the time) you didnt have any restrictions on this matter whatsoever.

[J B]

I expect you applied to the Deputy Ministry of Tourism for a licence?

Indeed we did