Date: 21 July 2021

On 19 July 2021 the Deputy Ministry of Tourism announced that it started accepting applications, from both legal and physical persons, for registration of premises (villas, residences, apartments) in the registry of Self-Service (Sharing Economy) Establishments (hereinafter “SSE”).

Prior to the submission of the application, the applicant should ensure that:

- It is registered for tax purposes (obtain Tax Identification number and VAT registration number if applicable) and

- the property is insured

The application must be submitted electronically via the Deputy Ministry of Tourism website www.tourism.gov.cy

The SSE can be advertised and rented, provided that it is registered in the above-mentioned Register and has received a special mark and registration number from the Ministry of Tourism, which will be listed on each platform where the SSE will be advertised, as well as in all relevant transactions.

The registration fee is €222 per SSE covering a period of three years.

It is noted that income derived from the rental of SSE is subject to income tax and VAT as per the provisions of the relevant legislation. They will also be subject to overnight fees to the Local Authorities.

We would like to stress the importance that as from 7 February 2022, when the relevant Law will come into force, the Deputy Ministry of Tourism may investigate whether SSE are in compliance with the legislation.

How can KPMG assist?

Should you like to further discuss the content and potential impact of the Circular to your business, please contact one of our trusted advisors from the Indirect Tax Department at KPMG Cyprus.

KPMG’s Indirect Tax team provides advice and assistance at the Cyprus and international level. We structure our effort to dovetail with your business issues and strategy. Our focus is on supplying value adding and pragmatic advice rather than just a list of recommendations.

Our tax professionals are able to review your company’s current tax position and provide relevant advice and planning on a range of indirect taxes, including VAT, customs duties and excise taxes (such as tax audits, reorganizations and acquisitions, etc.). Furthermore, we can help your company with its administrative obligations and contacts with administrative bodies.

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