Subletting in Cyprus

Subletting is the situation where an existing (original) tenant lets all or part of their premises to someone else who is called the subtenant (or sublessee, or subletter, in US usage). The original tenant may also be called the sublessor.

A sublease is a binding contract by itself. Law of contract rules and rental laws apply.

Legislation

• Contract law
• Rent Control Law 23/83.

To be legal, subletting must be:

• Allowed in the original rental or lease agreement, or if there is no provision in the agreement,
• With the owner’s consent.

Subletting may prove risky. If the subtenant damages the premises and leaves or refuses to make the repairs, the tenant is responsible for them.

Before subletting your home or other premises:

• Ensure that it is permitted in the original agreement or get the owner’s consent.
• Get the owner’s consent or permission in writing.
• Ensure you do everything properly; otherwise, there will be complications in the long run. For example, if you are not permitted to sublet and do so anyway, the property owner may take action against you.
• Make a clear sublease agreement with nothing that contradicts the agreement you already have with the owner.
• Income tax: you will pay income tax on your subletting proceeds.
• Insurance.
• Condition of your premises: you will be responsible for repairs.
• The premises are clean, safe, healthy and fit for human habitation, free from hazards, and in reasonable decorative order.
• Electricity, pipes, tanks, and other structure and infrastructure matters are in good order.

Subletting in Cyprus

1. It is only allowed if it is in the original rental agreement or with the owner’s consent.
2. If the tenant is subletting without consent, this is a ground for eviction if they are a statutory tenant. A statutory tenant is a tenant whose tenancy agreement has expired or duly terminated but remains on the premises and continues to pay rent.
3. The court will only order eviction if it considers it reasonable.
4. If subletting is allowed, any order to evict the tenant will not affect the subtenant unless the subtenant uses the premises for illegal or immoral purposes.
5. If the tenant is evicted and the subtenant is not prohibited from subletting and is not using the premises for illegal or immoral purposes, the subtenant becomes the statutory tenant of the owner. This means the subtenant can remain on the premises if they continue paying the rent.
6. Points 2-5 apply only to areas under rent control. In all other areas point 1 applies. Point 1 applies to all areas, whether under rent control or not.
7. The areas under rent control are those within each municipality's borders, except, mainly tourist areas, airport and seaport areas, and specific areas belonging to the government. Check with the municipalities for further information.

Importance

Subletting can be a flexible solution if a tenant wishes to relocate temporarily. Typically, owners or landlords retain the right to permit subletting and approve or reject tenants. Subletting in Cyprus cannot be done without the owner’s agreement. If done correctly, it may be a way for the tenant to receive income from the leased property.