Renting out in Cyprus is a profitable business for property owners. The influx of tourists and students to this sunny island is increasing by the year, which means that by renting your property, you can not only cover your initial investment, but also make a profit.
Some things to be aware of when renting out properties in Cyprus:
- The owner of the property can enter into an agreement with a real estate rental agency that will undertake to rent his / her apartment or villa to clients;
- Owners of a rented property have to pay a tax of 15% of the rental price.
- In case of long-term rentals, the homeowner has the right to increase the rent every two years by a maximum of 12%.
Recommendations to help you easily rent property in Cyprus:
- Long-term or short-term rent - decide this in advance, as the rental price and the type of clients will depend on it. Long-term rental in Cyprus brings the owner an annual profit of 3-5% of the property value, while short-term rental of luxury villas or apartments (2-3 weeks / months) can generate up to 8% per year. Long-term rental is targeted to those who need to work or study in Cyprus.
- Find a reliable real estate agency that will deal with all issues related to finding clients, displaying the property, drawing up a contract, paying taxes, cleaning, maintenance - this way you will save yourself a lot of hassle and will be able to dedicate time to your main activity.
- Communication with key clients. It is very importance for you to speak with key potential customers (in person, through a representative, by phone or skype) to make sure they are adequate. After all, we are talking about trusting your property, so it is better to know who you trust it to.
- When planning to rent out a villa, do not forget that a garden or equipped patio, a private pool or a yacht berth considerably increases the rent amount.
- Adequate evaluation of the property. When critically evaluating your property, carefully consider the following factors: location, amenities, proximity to the sea, distance to international airports, the condition and status of the property itself, including the presence or absence of furniture.
Documents for renting a property in Cyprus
Make sure that all the necessary documents are prepared by a qualified specialist. The package of documents may include:
- A document confirming the ownership of the property – title deeds or sale agreement;
- Documents proving the property owner’s identity – passport or ID;
- Documents confirming there are no outstanding utility payments;
- Rental agreement indicating the rent duration, rent amount and payment procedure, as well as other necessary terms and conditions.
The process of renting out Cyprus property
The rental procedure is simple and will be more comfortable with the help of professionals - valuers, lawyers, real estate agencies. This way the investor will protect himself and save the unnecessary trouble. The whole process can be roughly divided into the following stages:
- Expert evaluation of the property for rent;
- Choosing a real estate agency and signing the agreement (independently or through an attorney);
- Finding a client, viewing the property, signing rental agreement (real estate agency);
- Monitoring the property condition, communication with clients (real estate agency);
- Payment of income tax (independently or through an attorney).
We would like to draw your attention to the fact that buying a property in Cyprus worth min 300 000 euros allows you to get permanent residency in Cyprus for the whole family within 2-6 months. This will provide an “alternative airfield” for investor and his family, as well as allow conducting commercial activities under preferential tax laws. And getting a regular profit from renting out your property is an additional bonus for all investors. See more information about obtaining permanent residence in Cyprus in this article.