This guide is written for landlords, estate agents and property investors. Rules change regularly and individual circumstances vary, so speak to a Tsquared accountant before acting. We regularly help clients with rental income tax and special defence contribution, capital gains tax on disposals, vat on new builds vs. resales.
Key points
- Tourism registration required
- Track nightly income and platform fees
- VAT registration above €15,600 turnover
- Keep guest records for inspections
Challenges you face, solutions we provide
Challenge: Rental income tax and Special Defence Contribution
Our solution: Rental accounts prepared and annual TD1 returns filed with every allowance claimed
Challenge: Capital gains tax on disposals
Our solution: CGT computations with inflation indexation and lifetime exemptions applied before you sell
Challenge: VAT on new builds vs. resales
Our solution: Correct VAT treatment confirmed before completion, including the 5% reduced rate
Challenge: Short-let (Airbnb) reporting
Our solution: Tourism registration, platform income tracking and VAT thresholds monitored for you
Challenge: Agency commission accounting
Our solution: Clean commission bookkeeping with client-money reconciliations and VAT returns
Frequently asked questions
- Short-let and Airbnb tax: what's the short answer?
- Short-let income in Cyprus must be declared as rental or business income, and owners must register with the Deputy Ministry of Tourism and may need to charge VAT once turnover passes the threshold.
- Can Tsquared help with short-let and airbnb tax?
- Yes. We advise landlords, estate agents and property investors in Cyprus on short-let and airbnb tax and handle the filings for you.