Long-Term Rentals in Cyprus Gain Ground
Long-term renting in Cyprus is becoming an increasingly convincing strategy for owners of standard apartments. According to the RICS Cyprus Property Price Index, produced with KPMG, apartment rental values rose by 7.36% year on year in the second quarter of 2026, compared with 6.43% growth for holiday apartments.
What current asking rents show
Listing data for January–August 2026 reveals a clear gap between cities. The average monthly asking rent for an apartment reached €1,716 in Limassol, €1,131 in Paphos and €905 in Larnaca. At full occupancy, this would equal potential annual income of more than €20,500 in Limassol, about €13,600 in Paphos and roughly €10,900 in Larnaca. These are advertised averages, not guaranteed rents, but they provide investors with a useful benchmark. Current opportunities can be compared in the Limassol, Paphos and Larnaca catalogues.
Why the long-term model looks stronger
A high nightly price does not automatically produce a higher net return. In the Cyprus Mail example, an apartment rented for €1,200 per month generates €14,400 a year before tax and costs. At €100 per night with 180 booked nights, gross revenue reaches €18,000. After an illustrative 25% for platform fees, cleaning, utilities and management, only €13,500 remains. The property would need about 192 booked nights to match the conventional rental income.
Short-term letting may still work better for a premium beachfront villa. For a standard apartment, however, especially one managed by a third party, a reliable tenant reduces vacancies, operational work and seasonal exposure.
Taxes and operating rules
At the beginning of 2026, Cyprus abolished the special defence contribution on rental income, removing the previous effective 2.25% charge on gross rent for landlords who were liable. Personal income tax still applies, together with a 2.65% GHS contribution where relevant. Since July 1, 2026, rent payments must be made electronically. Short-term accommodation also requires attention to registration, operating costs and potential VAT obligations once the relevant turnover threshold is reached.
Conclusion for investors
The correct comparison is not the highest nightly rate but the net annual result. For mainstream apartments in Limassol, Paphos and Larnaca, long-term renting currently looks more predictable: rental growth is stronger, costs are clearer and income is less dependent on seasonal occupancy.
Source: Cyprus Mail