An explosive report by the Audit Office, published by Euronews on 3 July 2026, shows that just 23 % of the island’s 1 050 hotels and tourist accommodations currently possess a full operating licence. A further 22 % run on temporary certificates, while a staggering 55 % have never secured any form of permit despite a legal requirement dating back to 2019. The audit singles out the Famagusta free area, where only 24 of 241 properties are fully licensed. Short-term lets and legacy renovations following the 2013 planning incentives are blamed for the backlog.
![Audit Reveals Only 23 % of Cyprus Hotels Hold Full Operating Licence]()
For mobility teams looking beyond accommodation issues to the broader travel picture, VisaHQ’s Cyprus portal (https://www.visahq.com/cyprus/) offers up-to-date visa and permit guidance, streamlining applications so assignees arrive fully compliant before they even start searching for licensed lodging.
The Deputy Ministry of Tourism accepts the findings but argues that a 2023 amendment – extending the compliance deadline to 31 December 2026 – is pushing more operators to regularise. Why it matters for global mobility teams: corporate travellers booking long-stay accommodation may inadvertently choose non-compliant properties, raising insurance and duty-of-care issues. Multinationals are advised to request proof of licensing when negotiating project accommodation or relocation packages, particularly in resort areas where illegal extensions are common. The ministry says it will step up spot checks and will soon publish a public register of licensed establishments – a welcome tool for travel buyers. From 2027 fines of €10 000 per room will apply to unlicensed operators, potentially removing hundreds of beds from the market and tightening availability in peak season. Travel managers should therefore lock in 2027 room allocations early and consider serviced-apartment providers that already meet fire-safety and accessibility codes. Employees who use corporate housing allowances should be briefed on the risks of booking unregistered villas via peer-to-peer platforms.
For mobility teams looking beyond accommodation issues to the broader travel picture, VisaHQ’s Cyprus portal (https://www.visahq.com/cyprus/) offers up-to-date visa and permit guidance, streamlining applications so assignees arrive fully compliant before they even start searching for licensed lodging.
The Deputy Ministry of Tourism accepts the findings but argues that a 2023 amendment – extending the compliance deadline to 31 December 2026 – is pushing more operators to regularise. Why it matters for global mobility teams: corporate travellers booking long-stay accommodation may inadvertently choose non-compliant properties, raising insurance and duty-of-care issues. Multinationals are advised to request proof of licensing when negotiating project accommodation or relocation packages, particularly in resort areas where illegal extensions are common. The ministry says it will step up spot checks and will soon publish a public register of licensed establishments – a welcome tool for travel buyers. From 2027 fines of €10 000 per room will apply to unlicensed operators, potentially removing hundreds of beds from the market and tightening availability in peak season. Travel managers should therefore lock in 2027 room allocations early and consider serviced-apartment providers that already meet fire-safety and accessibility codes. Employees who use corporate housing allowances should be briefed on the risks of booking unregistered villas via peer-to-peer platforms.
