Cyprus Rental Property
Foreign citizens who are not residents of the Republic of Cyprus do not have the right to directly rent their house, but they can do it using the services of an intermediary who has the right to do so. In order not to bring themselves unnecessary worries, foreign homeowners use the services of real estate firms. If the property is purchased using a mortgage and at the same time the loan size is more than 50% of the price of the property, then you should provide income other than rent, it is wrong to rely solely on rental income, because periods of instability are possible. It is necessary to rent a villa or an apartment without violating the law: the rental income must be entered into the income declaration, and you must pay tax from this money. We must decide how to rent housing: for a holiday or for a long time.
It is more profitable for the owner to rent his property in Cyprus on a short-term basis, rather than renting on a long-term basis, that is, renting housing for a year or more, one way or another, long-term rental yields rental income of about 3-3.5 percent of the price of the house. In the event that the rental proceeds from the long-term lease are not satisfactory, it is necessary to take them for the period of the vacation.
If the house is rented for a short time, the owners have an excellent opportunity to spend weeks and months in the house. The amount of rental income for a short term may be more than five percent, it will depend on the category of the villa or apartment, condition, proximity to the sea or the center of the city and so on. Vacationers often want to rent real estate for themselves during their vacation rather than relax in a hotel: this vacation is more convenient, more pleasant, and also more profitable. If you make the most simple cost calculations, you can make sure that renting an apartment or a villa is profitable. A family can be in a two-bedroom spacious apartment on the beach, which will cost about 100-150 euros per day at the height of the season, in the off-season or for a long time renting an apartment is cheaper.
Preferring short-term rental villas or apartments, rather than renting a hotel room, it is possible not only to save money, but also to have at your disposal a spacious and comfortable vacation accommodation, where there is no hotel fuss, without sacrificing the view of the sea and the sunset.
With funds that are spent on renting a villa or apartment, a group of people can relax. Comparable services at the hotel will cost more. The Cyprus residential real estate rental market develops best in areas where the flow of holidaymakers does not disappear in winter, and rental housing brings 5% income in winter, and in the peak season, the amount of income on short-term rent becomes greater. Limassol and Paphos are a more reasonable choice in terms of rent.
The famous resort of Paphos is popular with the Scandinavians and the British, especially the elderly: in the height of the summer season on the island of Aphrodite they are hot, but the winter and autumn in Cyprus is much more comfortable than in the winter in their countries, for this reason in the fall and winter they they like to come to the south island, they spend their holidays in this tourist center and, therefore, they rent Cyprus property. Unlike small resorts that focus on summer tourism, Paphos and Limassol – the largest tourism centers – are able to provide a full range of services at any time of the year and not cut back on their range.