Registration of Villa for Holiday Rental

[Princebytor]

Although we only rent out our villa for a few weeks each year, I understand that the grace period for the new legislation expires in January 2022 and we could be liable for a 5000euro fine (or worse still 1 year in prison) if we fail to register our property.
I am just curious whether everybody is now registering where necessary or are they ignoring the requirement on the basis that the authorities will not enforce the legislation ?

[Dominic]

If anybody is thinking of ignoring the requirements I seriously wouldn't recommend stating that on a public forum.

[Princebytor]

I wouldn't worry about the public forum Dominic, from the 1st Jan 2022 it will be an offence to advertise a property for rental without the registration number. From my limited research on VRBO, Holiday lettings, etc, I haven't found one property yet quoting the requisite registration number.

[J B]

I have been "looking into it"

I need a Tax Identification Number - does everyone have one of these?
Valid insurance - easy
Copy of our building permit - not easy

Hmm

[WHL]

My next door neighbour is a civil servant, and often have an evening chat with him over a keo or two, he says they mean business re holiday lets , tax dodging etc, but if you feel lucky , go for it

[Princebytor]

I am registered for tax here, even though I don't pay or have submitted a return as the rental income falls well below the 19k euro threshold and as a non-cypriot resident I am not liable for SDC. I do pay tax on the rental profit on my UK self assessment tax form. The application form is relatively straightforward, I presume the tax ID is the one I have already got from the tax office. The building permit approval is more of a problem as we never got a copy of the original building permit approval as we were advised that the title deeds can only be issued once all the building permissions have been approved, therefore I am just going to attach a pdf of our title deeds and see what happens. We already have the holiday let insurance with public/products liability cover plus the required safety equipment.
I asked the original question because it would be annoying to go through the process and pay the 222 euros for everybody else to flaunt the rules.

[WHL]

Dont you have to be a Cyprus resident to be able to rent your property out since Brexit?

[Uncle D]

According to this, non Cypriot residents cannot rent out short term holiday lets, unless the tenants are Cypriot residents
https://www.propertyguides.com/cyprus/n ... 0condition.

[Tuppence]

This appears to be the application form for registration https://www.tourism.gov.cy/tourism/tour ... n?OpenForm
The form states "Proprietor – Natural or legal person that is proprietor of the establishment" but doesn't say what constitutes a "legal person"

[WHL]

Not sure how up to date this is, but it gives some answers to renting out property.

https://www.propertyguides.com/cyprus/n ... ty-cyprus/

[trevnhil]

It does say.. "Written by Christopher Nye · 7th March 2019" .. So things may have changed in two and a half years..

Maybe ask an accountant if you use one..

[J B]

I am registered for tax here, even though I don't pay or have submitted a return as the rental income falls well below the 19k euro threshold and as a non-cypriot resident I am not liable for SDC. I do pay tax on the rental profit on my UK self assessment tax form. ..........

It's the same here with us although we have also managed to locate the building permit from our solicitor (and the Paphos District Office did eventually reply)

[Princebytor]

The application form asks whether the applicant is either an EU or Non-EU applicant, so I don't think the ability to rent out property is limited to Cypriots, although the need to register for tax here will deter a fair few Non Cypriots registering.

[Princebytor]

Yes HIC I have probably now drawn the same conclusion, it is just that renting our villa out is a hassle to start with and to add another complexity to it makes me wonder whether it is worth it. On top of the villa registration process, I am guessing that the authorities will start showing an interest in VAT registration and whilst we don't come close to the annual VAT registration threshold of 15000 euros I am guessing that it will come into play for a fair few property renters leaving them open to penalties etc from the tax authorities and the need to increase their rates.
Long term I am not convinced this is a sound strategy from the government, like it or not prospective villa purchasers do appreciate the option of renting their property out when they are not using it and this could ultimately discourage foreign investment in property here, ultimately reducing the self catering capacity.
Self catering is a distinct market and potential tourists are not going to start going to hotels as the hotel lobby believe they'll just go somewhere else.

[Dominic]

So charge a realistic rent then. Besides, in the past we have used a mix of villas and hotels in our holidays. The Venn Diagram of villa vs hotel holidays is more intersected than you think.

[Princebytor]

No problem if it is a level playing field, but if next doors villa are not complying with rules and we are.................. they get the rental not us

[Dominic]

So report them for not complying with the rules.

[WHL]

It makes me laugh, how many times do we read on here, about all Cypriots being bent, brown envelopes being exchanged, no one follows the rules, this is Cyprus etc etc, yet we will have expats thinking of ways to cheat the system,
In my opinion the government are doing the right thing, and have everyone register their rental properties, for the good of the countries coffers, making it fair for everyone,,
It will be better for the families renting the properties, as the properties will be inspected for safety, fire regulations etc, neighbor's will have, a chance to report noise problems etc,
the only people who will lose out are the duckers and divers who do not like paying taxes etc, usualy the same mob, who whinge about dodgy Cypriots.

[josef k]

This appears to be the application form for registration https://www.tourism.gov.cy/tourism/tour ... n?OpenForm
The form states "Proprietor – Natural or legal person that is proprietor of the establishment" but doesn't say what constitutes a "legal person"

A natural person is a human being. A legal person is a company.