Tax Reform: Bills to Legal Service Next Week

The Department of Taxation is finalizing the amending bills for the tax reform, aiming to send them to the Legal Service next week for legal review and to put them to public consultation.

According to CYPRUS NEWS AGENCY, the bills are expected to be submitted to Parliament after the summer recess. The goal is to implement the reform on January 1, 2026, as stated by President Nikos Christodoulides.

Key aspects include increasing the tax-free income to €20,500 and tax deductions for children, loans, and rents. For companies, the corporate tax increases to 15%, while the special defense contribution decreases to 5%.

Regarding green taxation, discussions with the European Commission for improvements are ongoing. The state budget for 2026 is in the initial stages of preparation.