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Tax Reform in Cyprus: Zero Tax for Tens of Thousands by 2026

Published February 11, 2026, 14:15
Tax Reform in Cyprus: Zero Tax for Tens of Thousands by 2026

The new tax reform in Cyprus has come into effect, aiming to reduce the tax burden and increase the disposable income of citizens. Already, 200,000 taxpayers have seen an increase in their net income, and it is estimated that 30,000 will be completely exempt from income tax by 2026. The reform includes an increase in the tax-free allowance to €22,000, new tax brackets, and tax breaks for families. Additionally, benefits are foreseen for small and family businesses, as well as tax incentives for innovation and green investments. The government argues that the reform will lead to a fairer and more competitive economy.