Short-Term Rentals in Cyprus: How Much Can You Really Earn?

Short-term rentals in Cyprus It still attracts people buying apartments for investment purposes. The long tourist season, large numbers of foreign visitors, and the popularity of seaside resorts mean that a well-chosen property can generate attractive income.

However, booking revenue alone doesn't reflect actual profitability. Platform commissions, cleaning, electricity, water, internet, repairs, and any management costs can consume a significant portion of the income. Therefore, before purchasing, it's worth calculating how much the owner will actually have left after deducting costs.

Short-term rentals in Cyprus require registration

Legal short-term rentals require property registration with the Deputy Ministry of Tourism. The registration number is then used when listing accommodation on booking platforms.

The registration cost indicated in the material is 222 euroThe property must also meet requirements related to, among other things, technical standards and safety.

For investors, this means that an apartment purchased for tourists shouldn't be treated like a regular apartment that can be immediately listed online. The formalities should be considered during the investment preparation phase.

Booking can take up a significant portion of your revenue

One of the biggest costs of short-term rentals are booking platform commissions.

In the analyzed example, the Booking.com commission was assumed to be approximately 15 percent With an annual gross revenue of 29,200 euros, this means approximately 4,380 euros cost per year.

This shows why you shouldn't judge an investment solely on the number of bookings and the price per night.

The greater the proportion of sales that occur through external platforms, the greater the proportion of revenue that goes to the intermediary.

Apartment for 250,000 euros – sample calculation

Let us assume the model presented in the analysis:

• apartment price: 250,000 euros,
• average accommodation price: 100 euro,
• average occupancy: 80 percent

An occupancy rate of 80 percent means approximately 292 rented days per year. At an average price of 100 euros per night, this is approximately 29,200 euros gross revenue per year.

At first glance, this looks very attractive. However, it's only when you add up the costs that the true investment becomes clear.

Cleaning costs several thousand euros a year

Tourist rentals mean that the apartment is regularly prepared for subsequent guests.

With an average stay of five days, this equates to approximately 58 bookings per year. If each cleaning costs 60 euros, the annual cost will be approximately 3480 euro.

Of course, the owner may pass on some of this cost to the guest through an additional cleaning fee. However, this does not change the fact that this cost must be factored into the calculation of the attractiveness of the offer and the final price of the stay.

Electricity, water and apartment maintenance

The Cypriot climate is conducive to tourist rentals, but also means intensive use of air conditioning.

Therefore, the owner’s costs must include:

• electricity,
• water,
• Internet,
• minor repairs,
• replacement of worn-out equipment,
• ongoing maintenance of the apartment.

In the presented calculation, approximately 3000–4000 euros per year.

With high occupancy, an apartment is used more intensively than a unit rented to a single person year-round. Furniture, appliances, air conditioning, and kitchen equipment therefore wear out more quickly.

How much is left of the €29,200 income?

With gross revenue at the level of 29,200 euros an example calculation looks like this:

Platform commission: approximately 4,380 euros
Cleaning: approximately 3,480 euros
Utilities and maintenance: about 3,500 euros

After deducting these costs, there remains approximately 17,800 euros per year before tax.

This amount, and not the €29,200 shown in the reservation value, is a much better indication of the investment potential.

With a purchase price of €250,000, this means that, before taxes and additional costs, the owner should primarily look at the net operating result, not just the turnover.

The management company will further reduce profitability

Not every owner lives in Cyprus and can deal with guests, cleaning, breakdowns and reservations on their own.

The solution is a property management company. However, a full service can cost around 15–25 percent of revenue, which can significantly change the final financial result.

Therefore, before purchasing, it is worth determining exactly what the proposed service includes.

Simply handing over the keys and organizing cleaning is different from actively managing sales, prices and the visibility of the offer.

A good location is not enough

Profitability of short-term rentals in Cyprus depends on the location, of course, but the way the offer is managed is also becoming increasingly important.

The owner competes with hundreds of other apartments. Photos, reviews, price, availability, response time, apartment standard, and listing position on booking sites all count.

It is also important to skillfully adjust prices to the season.

The same night can have a completely different value in the middle of summer, during a major event, during the holidays, or during the off-season. Maintaining the same price year-round can mean both lost bookings and underselling accommodations.

Direct bookings can improve your bottom line

Each booking obtained without the intermediation of a large platform can reduce commission costs.

This doesn't mean that owners should abandon Booking.com or Airbnb. These platforms provide enormous reach and access to customers who would be difficult to reach on their own.

As your business grows, however, it is worth building your own database of returning guests and increasing the share of direct sales.

With high annual revenues, even a few percentage points less in commission can translate into a noticeable difference in final profitability.

Is short-term rental in Cyprus still profitable?

It may be profitable, but it is no longer an investment that should be calculated based on a simple equation: price per night times the number of days.

All real costs and realistic occupancy must be entered into the calculation.

The most important are:

• proper location,
• real average price of accommodation,
• seasonality,
• platform commissions,
• cleaning,
• utilities and maintenance,
• management costs,
• periods without reservation.

Only then can a specific property be compared with other ways of investing capital.

Short-term rentals in Cyprus can generate a stable income, but the result depends not only on the apartment itself. It is becoming increasingly important how the property is managed and how effectively accommodation is sold.

Sources: CYPRNews own analysis.