The tax authorities of Cyprus are looking for opportunities to impose a tax on the short-term lease of real estate through Airbnb which, due to loopholes in the law are not currently taxed.
The head of the tax administration of Cyprus, Mr Yannis Tsangaris, said that in order to be able to tax this income, it is necessary to amend the law relating to the lease. Meanwhile, lawmakers presented two related draft laws. According to the first, the law should mandate that properties rented through the Internet be fully registered, and owners who do not register to be held liable.
Another legislative proposal provides for the registration and regulation of the leasing of the country houses, that are not currently registered with the Cyprus Tourism Organisation. There are about 20,000 country houses and cottages in Cyprus that are unregulated but leased online. The introduction of even a low tax rate would bring significant amounts to the state treasury.