The Council of Ministers of Cyprus has the power, pursuant to Article 8(4)(a) of Rent Control Law of 1983 (23/1983) (the “Law”), to determine the maximum increase of rent for residential and commercial real estate which falls within the scope of application of the Law. Following a decision of the Council of Ministers earlier in April 2023, the maximum increase in rent was set to 6%, following a 0% increase during the last 10 years.
Scope of Application
The Law applies to:
- Real Estate constructed prior to 31/12/1999,
- The Asset was rented or offered for rent prior to 31/12/1999,
- The Real Estate falls within the geographical areas determined by the Council of Ministers, and
- The Rental Agreement has expired and the Tenant maintains possession of the Real Estate.
The following categories of Real Estate are exempt from the scope of application of the Law:
- Real Estate used for agricultural purposes,
- Petrol Stations,
- Parking Spaces,
- Furnished residential Real Estate rented for less than 6 months, and
- Hotel units.
What Changes?
Pursuant to a decision of the Council of Ministers dated 12/04/2023, the maximum increase in rent for eligible Real Estate has been set to 6% for the period 22/04/2023-21/04/2025.
Accordingly, the Owners of eligible Real Estate are now permitted to request an immediate increase in the rent payable of up to 6%, which the Tenants are obliged to pay.
Tenants or Owners of eligible Real Estate who believe that the rent payable is not fair, may apply to the Rent Control Court for the determination of a fair rent.
Should you wish to find out more, contact out team at info@paraschou.com.cy.
