Politis

Call for Utilizing New Tax Framework: Irene Piki's Address

Published February 17, 2026, 09:21
Call for Utilizing New Tax Framework: Irene Piki's Address

Deputy Minister to the President, Irene Piki, called on businesses, professionals, and advisors to utilize the new tax framework, emphasizing the government's commitment to stability of rules and substantial dialogue. The Deputy Minister stated that the government aims for a simple, transparent, and effective tax system with clear benefits for the economy and citizens. The tax reform, according to Ms. Piki, is an emblematic cut that redistributes burdens fairly and makes the system simpler and more predictable. The new tax-free threshold of €22,000, simpler scales, the abolition of deemed dividend distribution, and the reduction of the Extraordinary Defense Contribution to 5% are expected to provide relief to families and businesses. The Deputy Minister stressed that the tax reform has already had a positive impact on household disposable income, as approximately 200,000 taxpayers saw an increase in their January salaries, while approximately 30,000 are expected to be fully exempt from taxes in 2026. At the same time, the government maintains a predictable and growth-friendly tax burden, making Cyprus an attractive destination for investment. Ms. Piki mentioned that the government is strengthening the competitiveness of the Cypriot economy through a fairer and more efficient framework, ensuring a stable institutional environment and targeted incentives, such as the special 8% rate for stock options. Attracting international businesses is considered a catalyst for the creation of a healthy and strong ecosystem of local businesses, enhancing their sustainability and extroversion.

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