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Bill To Extend Unlicensed Hotel Operations Until 2028 Goes To Parliament

Parliament is set to discuss a bill that would allow hundreds of hotels and tourist accommodations to continue operating without a full license until December 31, 2028. The proposal, put forward by the Deputy Ministry of Tourism, aims to give businesses more time to address planning and compliance issues.

Maintaining Operational Continuity

The bill extends a transitional framework under which operators must meet basic safety and health requirements while working toward full licensing. This approach is intended to keep businesses open while maintaining minimum standards across the sector.

A Progressive Timeline For Compliance

The proposal builds on earlier measures introduced in May 2025, when hotels were initially allowed to operate until November 30, 2025. Those who submitted architectural plans and safety documentation, including fire protection and emergency exit layouts, were later granted an extension until August 31, 2026. Progress, however, remains limited. Only 167 out of 733 accommodations, or about 22.8%, currently hold a full license.

Bridging The Licensing Gap

Data from the Deputy Ministry shows gradual improvement, although the pace remains slow. Licensed units increased from 5% in March 2023 to 21.5% by the initial deadline. Under the new bill, accommodations with valid building permits would be allowed to continue operating under a conditional regime until December 31, 2028. Businesses without full licenses could remain open until December 31, 2026, provided they obtain an operating certificate and submit the required documentation within six months.

Enhanced Safety And Compliance Protocols

Operators would be required to submit key documentation, including fire safety certificates, health approvals for recreational facilities, swimming pool permits, elevator inspection reports, and gas installation certificates. A risk assessment approved by the labour inspection department, along with a copy of the building permit, would also be required.

Enforcement And Future Impact

The bill includes provisions for legal action against operators that fail to meet the deadlines. The aim is to strengthen compliance while giving businesses a clear pathway toward full licensing. Parliament is expected to debate the proposal in the coming period, as authorities seek to address long-standing irregularities in the sector.

Cyprus Property Deals Reach €286 Million Despite Second-Quarter Uncertainty

Cyprus’ high-end property market remained active in the first half of 2026, although geopolitical uncertainty may have weighed on investment activity during the second quarter.

€286.4 Million Across The 50 Largest Deals

Property transactions worth a combined €286.4 million ranked among Cyprus’ 50 highest-value deals completed between January and June, according to real estate analytics firm Ask Wire.

Examining the country’s biggest sales across all districts, the report found that the 10 largest transactions alone accounted for €161.7 million, highlighting the concentration of activity at the upper end of the market.

Limassol Extends Its Lead

A €55 million sale involving a building and adjoining fields in Moni was the largest property transaction recorded during the period.

Six of the country’s 10 biggest deals took place in Limassol, with a combined value of €117.2 million. Paphos followed with three transactions worth €35.5 million, while Larnaca recorded one €9 million sale.

Across the broader ranking, Limassol’s 10 largest transactions reached €148.2 million, representing 51.7% of the total value of the top 50 deals. Paphos followed with €68.8 million (24%), while Nicosia recorded €26.7 million. Famagusta narrowly surpassed Larnaca, reaching €21.4 million compared with €21.2 million.

Land Continues To Drive High-Value Deals

According to Ask Wire CEO Pavlos Loizou, land acquisitions continue to dominate Cyprus’ largest property transactions.

“The land market dominates the list of the 10 highest-value property transactions, with seven sales involving fields and plots.”

Many of those sites are expected to be developed into luxury residential and hospitality projects, he added.

Office Demand Remains Strong

Growing demand for office space also reflects the expansion of international companies establishing operations in Cyprus, Loizou said.

“We continue to observe growing demand for office properties, reflecting the expansion of the new ecosystem of international companies that has been establishing itself in Cyprus in recent years.”

Eight of the 10 largest transactions were completed during the first quarter of 2026, with activity slowing in the following three months.

Loizou said the slowdown may reflect investor caution linked to the conflict in the Middle East, which appears to have influenced investment decisions during the second quarter.

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