Establishment of a maximum rate of 6% for rent increase
By Angelina Alyabyeva,
Trainee Lawyer, AML CYSEC Officer, LLB (HONS)
On 12th of April 2023, based on the recommendation of the Minister of Justice and Public Order, the Council of Ministers issued the below decree establishing a rate of 6% as the maximum rent increase for the two years from 22th of April 2023 to 21st of April 2025.
The Council of Ministers, exercising the powers conferred upon it by subparagraph (a) of subsection (4) of Article 8 of the "Rent Control Law of 1983 (23/1983) as amended," on the recommendation of the Minister of Justice and Public Order, has set 6% as the upper limit for rent increases over two years, starting from April 2023 to April 21, 2025.
In accordance with the above Law, a landlord has the right to request a rent increase only every two years, noting that such increase should not exceed the established and permitted as per to the above maximum rate of 6%.
The Rent Control Law of the Republic of Cyprus (Law 23/1983) establishes the following criteria to be met in order to regulate any issues concerning the increase of rent, regardless of the terms, conditions of a tenancy agreement:
a. A tenancy agreement has been concluded between the landlord and the tenant, provided that the tenant has a EU/EEA passport (there is an exception in the form if: the tenant can be a citizen of a third country, is married to a Cypriot citizen).
b. The lease term has expired.
c. After the lease term has expired, the tenant retains the premises and pays the last agreed-upon rent.
d. The property is located in the territory of the Republic of Cyprus.
e. The property was built before December 31, 1999.
f. The tenant becomes a "statutory tenant" only if the premises in question were also rented or available for lease before December 31, 1999.