RENTAL
Demand for self catering villas in Cyprus is increasing year on year as more families opt for the flexibility and reduced cost of a villa holiday. Demand for both short and long term rentals in Geroskipou is high due to its proximity to golf, beaches, schools, amenities, airport and nightlife – though at the same time enjoying a peaceful and elevated location.
However, despite the buoyant tourist market and high demand for villas with pools, owners should always be pessimistic about occupancy levels. It is never advisable to be completely reliant on rental income to fund mortgage repayments as there are likely to be void periods in the winter months.
Rental income is taxed at progressive rates ranging from 20%, 25% to 30% on income exceeding 20,000 Cypriot pounds. The usual deductions for property expenses and mortgage income are deductible. It is unlikely therefore that owners will be liable to pay much (if any) tax on their rental income.
A rental yield of between 4% - 5% is a realistic figure, though a property let on a long term basis can expect a great deal more than this.