On the 17th of January of 2020, the House of Representatives voted by a vast majority of 52 Mps the new Law N.9(I)/2020, establishing a new system of operation of self-catering accommodation on the territory of the Republic. The Law was published in the Official Gazette of the Government on the 7th of February of 2020 and is considered to be an amending Law to the already existing “Law on the Regulation of Establishment and Operation of Hotels and Tourist Accommodations of 2019″ N.34(I)/2019”. Both Laws, shall jointly be referred to as the “Laws on the Regulation of Establishment and Operation of Hotels and Tourist Accommodations of 2019 and 2020”.
The new Law sets the ground for the creation of as online “Registry of Self-Catering Accommodations”, where all properties concerned must register under a specific registration number. The timeframe for the registration completion corresponds to a period of 2 years from the date of publication of the amending Law for already operating properties, while new properties that enter the market must register immediately.
The online Registry shall be utilized by the state authorities for the operation of all relevant controls on the accommodations and their legal use. The platform shall belong to the Deputy Ministry of Tourism and shall allow any tax controls and/or other type of controls on the property to be performed by the competent administrative authorities.
The Law concerns all self-catering accommodations, that do not constitute a hotel or tourist accommodation property, but can be rather described as apartment units or mansions that are subject to rent and meet the following conditions, as exhaustively listed in the Part IIIa of the Law:
1. The property must be registered under a unique registration number at the Registry of Self-Catering Accommodations;
2. The property must operate under a valid and renewed registered license;
3. The property must fall under the category of a single residence and/or a single apartment unit and/or a single tourist furnished mansion.
The registration procedure is simple and must be executed in the following manner:
1. An application form regarding the property in question is submitted to the Deputy Ministry of Tourism
2. A registration document from the Tax Department concerning the property, along with a Tax I.D. or V.A.T. number for the property accompanying it
3. Payment of the application fee, subject to future announcements of the Government
4. Declaration of any income deriving from the immovable property in question
5. Examination of the application within a period of 2 months from the date of submission
6. Approval or disapproval of the application form
7. Issuance of a registration number for the specific property
8. Issuance of a license for exploitation of the specific property
Landlords’ liability:
According to the article 22 of the Law, as amended, it is mandatory to always provide the registration number and the license of the property concerned whenever advertised in any way, including online platforms. In case of default in complying with the provisions of the article 22, the landlord shall be liable of an offense equal to up to 1 year of imprisonment and/or a sanction of up to 5.000 Euros.
Registration license validity:
The registration license is valid for a period of 3 years and it renewable prior to expiration. However, the license may be revoked in the following cases:
1. The operator conducting the rental of the property has ceased its’ activities
2. The landlord or the operator has been charged for a serious offense
3. The license approval was based on fall or misleading facts
It is important to emphasize that the administrative officers of the Deputy Ministry of Tourism are fully entitled to operate inspections on the self-catering accommodations upon their own discretion. Any default within the operation procedure is from now on considered to be illegal under the new Cyprus legislation.
Please note that the present article is for informational purposes only. For a legal consultation, you may contact Arsen Theofanidis LLC and one of our attorneys shall be glad to assist you!
N. Kalifatidou
Advocate – Legal Consultant
Arsen Theofanidis LLC