Tax Reform and Family Support in Cyprus

The demographic crisis in Cyprus is a national alarm, with declining birth rates threatening the population's viability. The support policy since 2012 is considered inadequate and unfair, mainly benefiting the lower income class.

The proposed tax reform could address the low birth rate, but the income ceiling of €80,000 creates unequal treatment, especially for large families. Public consultation highlighted parents' concerns about this injustice.

A radical change is needed by differentiating income limits based on the number of children, in order to provide real tax incentives. The current policy leads to demographic collapse, as it condemns the middle class to limiting the number of children.

The tax reform must substantially support the family and curb the low birth rate.