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Cyprus Parliament to Amend Tax Reform a Month After Implementation

Published January 26, 2026, 10:12
Cyprus Parliament to Amend Tax Reform a Month After Implementation

The Cyprus Parliament will proceed with legislative adjustments to clarify and strengthen the recent tax reform that came into effect at the beginning of the year. These changes will include the inclusion of main residence renovations in tax deductions, the mandatory payment of rent via bank transfer or electronically, and the requirement of having at least one dependent to receive a tax deduction. Furthermore, the income of children living with their parents will not be counted towards the family income, while a clear definition of income included in the family income (alimony, benefits, excluding child allowances and student grants) will be provided. Finally, the income ceiling for single parents eligible for tax deductions will be increased from €40,000 to €50,000. The Tax Commissioner informed the parliamentary committee about the implementation of the reform, emphasizing that all taxpayers will see a tax reduction and that the reform has already increased the tax-free threshold and improved the tax brackets.