23 March 2021

A largely discussed issue over recent times is a unilateral decision on rent increase. Information on the network appears to be contradictory. It is important to understand the significant difference in the regulation of rent in Cyprus, depending on the date of construction of the property.

If the property was built prior to 01.01.2000 (there are certain exceptions), then rental issues are subject to the provisions of the Rent Control Law (23/1983) as amended (the “Law”).

The Law offers protection against rent increases and eviction of tenants who are classified as "statutory tenants".

A statutory tenant is legally defined in the Law as a person who leases premises in a building constructed prior to the year 2000, whose tenancy period has expired and the tenant remains in the leased premises (provided that the duration of the tenancy is more than 6 months and that the tenant is not a third-country national).

In cases where a tenancy qualifies as a statutory tenancy, the matter of imposing a price increase is mandatorily regulated by the Law, irrespective of any provision of any tenancy agreement ( whether in force, expired or terminated), and any disputes in connection to rent are resolved in the Rent Control Court (special jurisdiction).

According to the Law, a landlord can only request a price increase every two years, and such an increase must not exceed the maximum percentage set by the Law. The maximum increase was originally set by Law at 14%, and from then on the Council of Ministers issues an order every two years revising the maximum increase rate.

According to the latest decision, the maximum increase is zero until April 2021.