A Paphos flat bought for about €220,000 can net about 5.8% a year before income tax with twelve months of letting, 4.7% if you take July and 5.6% if you take February. Seasonality, registration, tax and buying costs.
In brief. A Paphos one-bedroom flat bought for about €220,000 and let for eleven months can earn about 5.8% net a year before income tax on our illustrative assumptions. Taking July for yourself cuts that to about 4.7%; taking February cuts it to about 5.6%. The month you choose matters more than the one-month rule itself. All figures are our arithmetic as of October 2026, not market data.
Cyprus is a natural first place to think about this model. It has about 4.5 million visitors a year, a long season, a stable EU legal framework and a rental market where holiday lets are registered but open to foreign owners. This article works through what an owner who lets the home for eleven months and lives in it for one actually earns, which month to take, what the registration rules mean for a home you also use, and what buying costs. It builds on our overview of the model and the owner-month calculation. This is not tax or legal advice.
How seasonal Cyprus really is
The Cyprus statistical service reported 4,534,073 tourist arrivals in 2025, as quoted by Cyprus Business News. The shape of the year is what matters for an owner:
- January 112,100, February 133,760, March 200,736
- April about 419,000 (our subtraction from the published January to April total)
- May 479,160
- July 589,116, August 602,026, September 570,635
- December 156,959; October and November together about 772,000 (our subtraction from the annual total)
August brings about 5.4 times as many visitors as January. For a letting owner that means a four-month summer carries most of the income, spring and autumn are respectable, and the four winter months earn little. We use this split in the model: high season June to September, shoulder season April, May, October and November, low season December to March. The June figure was not found, so the high-season boundary is our assumption.
Where the money is made: three example flats
All prices below are drawn from our own articles on Cyprus prices and buying costs and Cyprus rental yield.
- About €170,000, a one-bedroom flat in Larnaca. Larnaca's average apartment price in the first half of 2026 was about €171,000. Lower entry price, a seaside town with a long shoulder season, and growth that has been strong
- About €220,000, a one-bedroom flat in Paphos. The tourism-led market of the three; Kato Paphos and Coral Bay are the resort areas. Our yield article shows about 4.8% gross for this size on a long-term let
- About €325,000, a two-bedroom flat in Paphos. Suits a family or two couples; the yield on a long-term let is about 4.4% gross, so the case rests on holiday letting
Limassol is the strongest all-year market in our yield article, but at €265,000 for a one-bedroom and far more for anything larger it is a long-term-let and capital-growth purchase more than a holiday-let one. If you mainly want to be near the sea in summer, the three examples above fit the model better. For districts and prices see best areas to buy in Cyprus and what you can buy for €150,000-600,000.
What holiday-let data say, and how far to trust them
Trackers disagree. For Paphos, BnbCalc shows an average daily rate of €162, Airbtics a median occupancy of 78% with a €92 daily rate over November 2024 to October 2025, and AirDNA 66% occupancy with a daily rate of about $113. For Larnaca, BnbCalc reports 48% occupancy and €95 but groups it with Ayia Napa and Protaras, while Airbtics reports 75%. For Limassol we found only one neighbourhood, with 43.1% occupancy and a $160 daily rate. These are platform-scraped estimates from different periods, not official statistics. We therefore used round, conservative assumptions rather than any single tracker.
The model: eleven months against twelve
Assumptions for the Paphos one-bedroom at €220,000 (all illustrative): daily rate €130 in high season, €85 in shoulder season, €55 in low season; occupancy 80%, 60% and 35%. That is about 213 booked nights a year, 58% occupancy, and about €21,240 revenue. Variable costs are 28% of revenue: management 20%, platform and payment fees 3%, a reserve for wear and replacement 5%. Fixed costs are €2,600 a year for utilities, building service charge, municipal charges and insurance. Cleaning and linen are assumed to be paid by guests through the cleaning fee. Income tax and any mortgage cost are left out.
- Revenue, twelve months: about €21,240
- Net before income tax: about €12,690, which is 5.77% of the price
- Owner month in July: you give up about €3,220 of revenue, which is about €2,320 of net. Net falls to about €10,370, or 4.71%
- Owner month in May or October: lost net about €1,140. Net about €11,550, or 5.25%
- Owner month in February: lost net about €390. Net about €12,300, or 5.59%
The same method on the other two flats. The Larnaca flat at €170,000 (daily rates €100, €70, €50; occupancy 75%, 55%, 35%; fixed costs €2,300) nets about €9,190 or 5.41% over twelve months, and about €7,520 or 4.42% if you take July. The Paphos two-bedroom at €325,000 (daily rates €190, €125, €80; same occupancy as the first example; fixed costs €3,800) nets about €18,580 or 5.72%, and about €15,190 or 4.67% if you take July. For comparison, our yield article gives 4.5% to 5.9% gross for a long-term let and calls 3% to 4% net a realistic expectation. So the holiday-let premium is roughly one to two points, and about one point if you take July.
The lesson is simple. The owner month is not free, and in this example it costs about six times as much in July as in February. If you holiday in Cyprus only in the peak of summer, the model costs you roughly one percentage point of net yield a year. If you can come in late autumn or early spring, you give up much less.
Registration: what it means for a home you also use
Every holiday let in Cyprus needs a registration number from the Deputy Ministry of Tourism, and the number must appear in every advertisement and listing. From 20 May 2026 EU Regulation 2024/1028 also obliges platforms such as Airbnb and Booking.com to show the number and pass listing data to the authorities. The registration applies to the unit whatever the owner's nationality, and it follows the property, so a flat that is already registered is worth more to you than one that is not. Our short-term rental rules article explains the procedure and the fines. We found nothing in the sources that bars an owner from using their own registered home for part of the year, but building rules can: in a managed complex the owners' association may restrict letting or require a certain use. Ask the seller for the registration, the association's rules and the management contract before you pay a deposit; our guide to licences, building rules and insurance has a checklist.
Tax in brief
Non-residents pay Cypriot income tax on Cypriot rent. Our yield article reports a 20% wear-and-tear allowance on gross rent, income tax at 20% to 35% on higher income, and a 2.65% healthcare contribution on gross rent. Short-term lets may be treated differently from a long-term lease, and we did not find a rule on how your own month is treated for tax. Treat the net figures above as before tax and ask a Cypriot accountant; see how personal-use days and rent are taxed. Capital gains on a later sale are covered in Cyprus capital gains tax on sale.
What buying costs
On a resale flat at €220,000, our prices article's method gives transfer fees of about €5,380 (the scale of 3%, 5% and 8%, halved on a resale) and legal fees of about €2,620 including VAT, about €8,000 or 3.6% in total, before any agent commission and mortgage costs. On a new build, VAT of 19% applies instead of transfer fees: €41,800 on €220,000. The reduced 5% VAT is reported to apply to a main permanent residence only, so a holiday home normally pays 19%; confirm eligibility with a lawyer. Read new build or resale in Cyprus and mortgages for foreigners before you decide. Be sceptical of promised returns: see guaranteed rental schemes: the catch.
Managing it from abroad
With eleven months of letting you need a manager who will block your month, clean between guests and handle keys; fees of 18% to 25% of revenue are typical in Cyprus. Our guide to running a holiday home from abroad covers the owner-stay clause and the calendar.
Mistakes to avoid
- Buying an unregistered flat on the promise that registration will follow
- Taking your month in July or August without pricing the loss
- Using a gross yield from an advert as if it were your net
- Ignoring the building's rules on short lets and the service charge
- Paying 19% VAT on a new build when the model assumed 5%
- Paying a deposit before checking title, registration and the management contract
Checklist before you buy
- Is the unit registered with the Deputy Ministry of Tourism, and can the registration transfer to you?
- What do the building rules and the service charge say about holiday letting and your own use?
- Which month will you take, and what does it cost in lost net on your own numbers?
- Which VAT or transfer-fee regime applies to this unit?
- What does the manager charge, and does the contract let you block your month?
- Which tax applies to the rent in Cyprus and in your own country?
FAQ
Can I really live in my Cyprus flat for one month and let it the rest of the year? We found nothing in the sources that bars it, provided the flat is registered for holiday letting and the building rules allow it. Confirm the registration and the association's rules before you buy.
Which month should I take? A low-season month costs far less than a summer one: in our example about €390 of net for February against about €2,320 for July.
Is the 5% VAT available for a holiday home? It is reported to apply to a main permanent residence, so normally not for a holiday home. Ask a lawyer.
How much do I make after costs? Our illustrative net before tax on the €220,000 flat is about 5.8% for twelve months of letting, about 5.6% if you take February and about 4.7% if you take July. Real results depend on the unit, the manager and the year.
Is it better to let long term? A long-term let gives steadier income and lower management cost, but you cannot use the flat. Our yield article compares the two.
This article is informational only and is not legal, tax or investment advice. All income figures are illustrative arithmetic on stated assumptions; confirm current rules and numbers with local professionals before you buy.