Cyprus: MPs Plan Bill To Tax Airbnb Rentals
Two Cypriot MPs have organized a bill which aims to regulate and tax short-term rentals like Airbnb.
1/3 of tourists stay in unregistered accommodation according to Disy deputy Averof Neophytou.
The proposal will also create a registry of self-catering accommodation and this will be Cyprus Tourism Organisation maintained.
Moreover, anyone renting out their property in the short-term will be legally required to register.
The Disy deputy has stated that the change would benefit thousands of households, since citizens would be able to rent out their flats or villas for short-term holidays, for example. He is also have said to have predicted that the earnings from short-term rentals might exceed a normal income for the households.
This income will then be taxed.
Neophytou has said that this kind of activity is illegal, however it is not definitely clear whether this is true or not. The Disy deputy proposed that a transition period could be implemented once the law is passed.