Sigma Live

Tax Relief for Approximately 30,000 Individuals in 2026 in Cyprus

Published February 17, 2026, 14:13
Tax Relief for Approximately 30,000 Individuals in 2026 in Cyprus

Deputy Minister Irene Piki announced that the tax reform implemented from January 2026 is already having a positive impact on household disposable income. Approximately 200,000 taxpayers have already seen a reduction in the taxes they pay, and around 30,000 individuals are expected to be fully exempt from paying taxes within 2026. The reform includes an increase in the tax-free threshold to €22,000, simpler tax brackets, the abolition of deemed dividend distribution, and a reduction in the Extraordinary Defense Contribution to 5%. Tax Commissioner Sotiris Markidis emphasized that these changes improve the competitiveness of Cypriot businesses and strengthen tax compliance, with measures such as the temporary sealing of business premises and access to bank data.