Alpha News

Tax Reform: Zero Tax for Tens of Thousands in 2026

Published February 11, 2026, 17:35

The new Tax Reform in Cyprus has come into effect, aiming to reduce the tax burden and increase the disposable income of citizens and businesses. Already, approximately 200,000 taxpayers have seen an increase in their net income, and it is estimated that 30,000 individuals will be completely exempt from income tax in 2026. Key elements of the reform include increasing the tax-free income threshold to €22,000, new tax brackets, and targeted tax allowances based on family composition. In addition, changes have been made to benefit businesses, such as the abolition of deemed dividend distribution and the reduction of the Defence Contribution. The reform is accompanied by tax incentives for innovation and green investments.