Cyprus Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Cyprus's landlord and tenant laws are judged by the Global Property Guide to be Pro-Tenant between landlord and tenant. Both parties' rights are well-protected by the Rent Control Law 1983. Rents can be freely negotiated, and relations between the tenant and landlord are well-protected on both sides. In case of an eviction, the law is slightly biased towards the tenant, depending on whether it is located in Rent Control Areas or Contractual Tenancies (new developments), so we based our conclusion on this slight advantage.

Rents: Can landlord and tenant freely agree rents in Cyprus?

The rental market can be divided into two broad categories: Houses controlled by the Rent Control Law (1983), and the free market. The Rent Control Law and its updated amendments apply to tenancies of residential or business premises which lie within what the law defines as 'Controlled Areas,' i.e., towns, suburbs, and rural centres, which were completed before 29 December 1995. However, foreigners (except the non-citizen wife of a citizen of the Republic) and legal entities controlled by non-residents are not covered by the provision of the law, and do not benefit from Rent Control Law protection.

Tenancies in areas not subject to rent control are considered contractual tenancies, meaning they are fully regulated by the terms agreed upon and signed by both the landlord and tenant. These tenancies can also be renewed.

It is important to note that any tenancy lasting less than six months is classified as a contractual tenancy.

For tenancies covered by Rent Control, a signed agreement between the landlord and tenant also governs the terms. However, in these cases, the provisions of the Rent Control Law apply in addition to the contract.

Landlords are permitted to raise rent by up to 6% for their tenants between April 22, 2023, and April 21, 2025. Any increase beyond this limit would violate the Rent Control Law.

If a tenant has lived in the property for at least two years, they have the right to reject a rent hike exceeding the allowed percentage. Should this happen, the landlord may take the matter to the Rent Disputes Court to assess the property's fair rental value.

Likewise, tenants can bring a case to the Rent Disputes Court if they feel the rent is substantially above market rates. The Court will evaluate factors such as the property's age, features, size, location, condition, and available amenities. However, personal circumstances will not be considered in the decision-making process.

What rights do landlords and tenants have in Cyprus, especially as to duration of contract and eviction?

If a tenancy agreement expires but the tenant continues to pay rent, they cannot be evicted unless specific conditions are met.

One such condition is non-payment of rent. In this case:

• The landlord will issue a notice to the tenant.
• The tenant has 21 days to make the payment. If they fail to do so, the landlord can submit a written notice and apply for eviction.
• The tenant can settle the rent through the Court, obtain a receipt from the court accounting office, and respond to the landlord's application.
• Within three days, the Court Secretary will decide whether to approve or reject the eviction request.
• If an eviction order is granted, the tenant will have 90 days to vacate the property.

A tenant may also face eviction under the following circumstances:

• They have failed to pay rent within 21 days after receiving a notice to do so.
• The landlord requires the property for their own use, for a family member, or for dependent parents.
• The landlord plans to either demolish and rebuild the property or carry out significant renovations.
• The tenant is causing a disturbance, using the property for illegal or immoral activities, or has damaged it due to negligence or destructive behavior.

Deposits

The security deposit is typically equivalent to one month's rent. However, in some cases, the landlord may require a higher amount. The deposit must be paid in full on the day the long-term rental agreement is signed.

How effective is the Cypriot legal system?

The effectiveness of the legal system for landlords to evict tenants in Cyprus depends on whether the property falls under Rent Control or Contractual Tenancy laws.

Rent Control Areas (Older Properties & Certain Locations)

• Stronger tenant protection: Tenants in rent-controlled areas have significant legal protections, making eviction difficult.
• Lengthy court procedures: If a tenant refuses to leave, eviction cases can take months or even years in court.
• Valid eviction reasons required: The landlord must provide a legally acceptable reason, such as non-payment of rent, personal need, or property redevelopment.
• Court approval is necessary: Even if a tenant is in violation, eviction is not automatic and requires a court order.

Contractual Tenancies (Newer Properties & Non-Controlled Areas)

• More flexibility for landlords: Since these agreements are purely contractual, landlords have more control.
• Eviction based on contract terms: If a tenant breaches the agreement, the landlord can initiate eviction proceedings.
• Faster process compared to rent-controlled cases: Courts tend to resolve these cases more quickly, but delays can still occur.

Legislation

The Rent Control Law 1983. Agricultural land, furnished apartments for less than 6 months, hotels, and petrol stations do not fall within the ambit of the Rent Control Law.