New Tax Reform in Cyprus: Support for Vulnerable Groups and the Middle Class
December 22, 2025
The Cypriot Parliament approved a new tax regime after 23 years, aimed at supporting vulnerable groups and the middle class. Tax deductions are increased based on the number of children and income levels. The tax-free thresholds are raised and new tax brackets are introduced. Incentives for businesses are also provided, and some tax burdens are abolished. This reform also aims to combat tax evasion.