Discussion on regulating self-catering accommodation of the Airbnb type is set to intensify in Cyprus in the coming period. The issue resurfaced with the Audit Office’s report on the Deputy Ministry of Tourism, which covered licensing for both Airbnb-style accommodation and hotels and other tourist accommodation.
The Audit Office’s findings raised serious concerns over the entire licensing process and catalogued the risks involved, an issue given added urgency by the collapse of a building in Germasogeia on April 11, 2026, where three self-catering apartments were found to have been operating.
Yesterday, the Cyprus Tourist Association (STEK) addressed the issue at length in a statement, prompted by the Audit Office report, saying the findings confirm the Association’s longstanding concerns. It noted that the fact accommodation continues to operate and advertise without the required licences, without substantive checks, and without effective coordination between the relevant authorities, shows the current system cannot fulfil its purpose. STEK added that inadequate regulation of the sector does not only create unfair competition against the legal hotel industry. It also affects the housing market, makes it harder for permanent residents to find affordable housing, creates problems for local communities, affects quality of life in neighbourhoods, and poses risks to visitor safety.
The recommendations
The tourism enterprises association put forward seven recommendations it said could be included in the bill being prepared by the Deputy Ministry of Tourism. These are: effective and systematic checks to identify and stamp out illegal accommodation operations; substantive law enforcement mechanisms with deterrent administrative and financial sanctions; mandatory display of registration numbers on all online platforms, alongside platform cooperation with the relevant authorities to remove illegal listings immediately; setting a maximum annual duration for short-term rentals, following the standards of many European countries; giving local authorities the power to restrict or ban short-term rentals in specific areas where a serious strain on the housing market, significant nuisance, or disruption to residents’ quality of life and peace is found; mandatory payment of an overnight stay fee; and the application of uniform safety, health and insurance standards for all hospitality providers.
What the Audit Office found
The Audit Office’s findings noted that, as of May 6, 2026, 8,464 licensed self-catering accommodations were recorded island-wide in the Self-Catering Accommodation Registry. Following a sample check carried out on online booking platforms, indications emerged that a significant number of self-catering accommodations operate and advertise without being registered in the Registry, or with inaccurate licensing details, preventing effective control and oversight. A large number of accommodations could also not be identified at all.
Of the twenty sampled accommodations that could be identified, only six, or 30 percent, were registered in the Registry and held a valid registration licence. Of the remaining fourteen, ten, or 50 percent, did not display a registration licence number and did not appear to be registered, while in four cases, or 20 percent, a registration licence number was displayed but did not match Registry records, either because it did not correspond to a valid registration number or because it referred to a different property.
In its response, the Deputy Ministry of Tourism said a number of accommodations advertising on online platforms are not registered in its Registry or do not display a registration number. It said this would be addressed through the implementation of EU Regulation (EU) 2024/1028 of April 11, 2024, which entered into force in May 2024, with its related obligations applying from May 20, 2026.
Hotels have a problem too
Beyond self-catering accommodation, the Audit Office’s report also found that only 23 percent of hotels and tourist accommodations were fully licensed, while 22 percent held a temporary licence. As of April 27, 2026, of a total of 728 hotels and tourist accommodations, only 168 had secured an operating licence under the relevant legislation, a compliance rate of just 23 percent. Another 158 accommodations, around 22 percent of the total, operate under temporary arrangements, provided certain conditions are met.
As a result, the majority of hotels and tourist accommodations, 402 entities or 55 percent, continue to operate without an operating licence or any other temporary arrangement, showing that neither the facilitations nor the temporary arrangements adopted in recent years have worked effectively.