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Jan 23, 2026

Cyprus parliament grants one-year ‘special permit’ to keep unlicensed hotels open

Cyprus parliament grants one-year ‘special permit’ to keep unlicensed hotels open
Hundreds of hotels and tourist residences that failed to secure full operating licences before last November’s deadline have been thrown a lifeline after the House of Representatives passed emergency legislation on 22 January. The amendment replaces the expiring “temporary permit” with a broader “special operating permit”, valid until November 2026 and renewable for a further two years if properties take no additional unauthorised action.

The measure averts the immediate closure of an estimated 17 % of Cyprus’ hotel stock—many of them small, family-run units along the coast—thereby preventing a sudden contraction in room supply just as the island targets a record 4.5 million visitors for 2026. MPs argued that forcing non-compliant properties offline would have strained capacity during peak conference season and undermined the country’s efforts to attract digital-nomad programmes and large-scale corporate retreats.

Operators must still file fire-safety studies, but the fire service now has six months (up from 30 days) to approve them. Requirements for costly property-valuation reports and audited turnover statements have been scrapped to speed processing. Industry association PASYXE welcomed the reprieve but urged members to “use the extended timeline wisely” to meet full EU health-and-safety benchmarks.

Cyprus parliament grants one-year ‘special permit’ to keep unlicensed hotels open


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For global-mobility teams booking long-stay accommodation for assignees, the new regime offers near-term certainty but also calls for enhanced due diligence. Travel buyers should request proof of the special permit and confirm that fire-safety submissions are in progress. Insurers may revise coverage terms for properties still lacking final certification.

The Tourism Ministry will publish a public register of hotels holding special permits by mid-February, allowing corporates to vet suppliers quickly. Repeat non-compliance after November 2026 will trigger automatic suspension of the permit and fines of up to €50,000.
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