ER Team News


How To Operate A Hotel In Cyprus

How To Operate A Hotel In Cyprus

 How To Operate A Hotel In Cyprus:  Cyprus, a jewel in the East Mediterranean, is on the migration path between Europe, Middle East, Asia and Africa. Offering 340 sunny days per year, Cyprus has always been considered as one of the most highly reputable holiday destinations for tourists all around the globe. The island is also well known for its breath-taking natural beauty, it’s fascinating remains of history that one can easily visit all-round-year and not to mention the 57 Blue Flag awarded immaculate coastlines. Enviable lifestyle, advanced and modern infrastructure, minimal commutes, highly valued safe environment are some of the factors that justify its rank as the 5th best relocation destination worldwide.

Apart from being a not-to-miss destination for leisure purposes, Cyprus is also an excellent opportunity for foreign investors in the tourist sector. According to a recent study from the International Monetary Fund (IMF), more than 30 applications for hotel expansion, renovation and construction have been submitted before the Cyprus Tourism Organisation and over half a billion euro is being estimated to be invested over the following years.


 How To Operate A Hotel In Cyprus :  What licenses are required?

The legal framework regulating the hospitality industry of the island is the Hotels and Tourist Establishments Laws 1969 – 2014. According to the latter, Cyprus Tourism Organization (C.T.O.) constitutes the competent authority responsible for ensuring and supervising that hotels and tourist establishments comply with all the necessary conditions, quality standards and obligations prescribed by it. Below, one can find a helpful summation of what is required to be obtained prior to the commencement of a hotel’s operation and by which respective authority:


License by the C.T.O.   ( Cyprus Tourism Organization):

  • Initially, the first and foremost licence for operating a hotel in the Republic, is to be granted by the C.T.O. This can be provided only to natural or legal persons resident in the Republic of Cyprus or citizens/legal persons of another member state. Noteworthy, is the necessity of a person acquiring the post of a manager, after assessing the individual’s qualifications, experience and expertise.
  • A Procurement Suitability Certificate is necessary declaring the suitability of the plot intended to be developed.
  • Approval must be obtained in relation to the architectural studies and plans of newly proposed establishment.
  • The CTO is also the responsible authority for the approval of the hotel’s trade name, irrespective of whether it has been approved by the Registrar of Companies.
  • The hotel’s operator must apply for classification and issue of an operating licence, alongside with an application for the position of a manager.
  • In relation to the establishment of restaurants or other categories of catering & entertainment establishments (including Restaurants, Taverns, Cafeterias, Pubs or Bars, Music and Dance, Discotheques etc) which are possibly in operation within the hotel establishment, separate licence(s) need to be acquired.
  • One can find further information and details by visiting the following link which gives an appealing description on all mandatory steps and proceedings:

License by the Local Planning Authority/Municipality:

  • Securing a Town Planning Permit is a necessary step, referring either to the erection of a new building or the alteration or the extension of an existing building. Again, the examination of the architectural studies and plans of the hotel establishment is an absolute prerequisite for the granting of such building permit.
  • As to the operation of bars offering alcoholic drinks or beverages containing alcohol, a separate retailer’s licence is to be obtained.

Classification according to the relevant Law:

In accordance with the law, hotels are classified into classes of one to five stars so long as they comply with the prescribed conditions of building construction, quality of construction, equipment, level of operation and in general the services and amenities provided. Equally, location, number of beds, building layout, furniture, equipment, number of staff, quantity and quality of services and organization are some of the defining factors taken into consideration in the assessment process.


Cyprus Economic Climate:

The recent economic turmoil has definitely affected Cyprus on a large scale, but now the recession is in the past for the Republic. Recent economic developments have been encouraging and more specifically, IMF forecasts Cyprus GDP to exceed the Euro area growth rate in 2018. Many credit rating agencies worldwide, such as Standard & Poor’s, Fitch, and Moody’s have recently upgraded Cyprus rating to ‘stable-to-positive’.

How we can help:

Our highly qualified personnel have the necessary knowledge and proper expertise to assist you obtain the necessary licenses, fulfill all the aforementioned prerequisites and establish a successful business in Cyprus. To request more details or any other advice, do not hesitate to contact us at: [email protected]

If you are interested for a Cyprus Company Registration, bank account, vat registration etc, please get in touch with us.

Contact us

For Company Registration

Free Hotel Hosting

E.R.Team offers you our valued client free hotel hosting in a Larnaca hotel with your Cyprus Company registration. For more information please follow the link . See More

Recent Posts