Dorita Yiannakou
Major changes are coming to Cyprus’ taxi industry, with the government preparing a sweeping reform aimed at cleaning up a system long plagued by unfair practices, illegal operators, and inconsistent pricing.
The Transport Ministry is drawing up a new strategy that will overhaul how professional taxi licenses are granted, regulate fares, and tighten supervision across all districts. The reform, expected to roll out by April 2026, aims to be in place before the summer tourist season and the May parliamentary elections.
Transport Minister Alexis Vafeiadis told Kathimerini that long-standing issues have created unfair competition and safety concerns. “The Cypriot market has changed significantly since 1990. It’s time the taxi sector modernized,” he said.
Licenses and the black market
Officials say the system has become distorted over time, with taxi licenses resold on the black market for €60,000–€80,000 and even rented out for €800 a month. The new plan will regulate how licenses are distributed by district, based on each area’s actual needs; for example, Paphos reportedly has a shortage of taxis, while Limassol and Larnaca are already saturated.
The reform will also introduce transparent criteria for new licenses, taking into account geographic and social factors such as tourism and accessibility in remote communities.
Crackdown on piracy
The government also plans to tackle “piracy”, the illegal transport of passengers, which has been a persistent problem for years. Authorities are considering fines for those operating without a license, including cases involving vehicles from the occupied territories. Officials say such practices not only hurt legitimate drivers but also pose serious safety risks for passengers.
Fare reform and payment rules
Another key part of the plan involves mandatory taximeters and universal card payments, ending the current “chaotic” system where drivers often set their own prices or decide whether to accept cards.
Authorities are also exploring special licenses for drivers serving hotels, people with disabilities, and potentially reopening talks on vans, rural taxis, and app-based services like Bolt.
Chaos at airports
The situation at Larnaca and Paphos airports has further highlighted the need for immediate regulation. Reports point to overcharging, unmonitored taxi ranks, and misleading practices toward passengers, especially at Paphos Airport. In some cases, taxi drivers have reportedly occupied bus stops, creating confusion for travelers.
The government says it intends to implement comprehensive oversight of airport taxi operations to ensure fairness, transparency, and order.
Low interest in electric taxis
Efforts to modernize the sector by promoting electric vehicles have so far fallen flat. Despite subsidies of up to €20,000 per vehicle, few drivers applied. Officials from the Road Transport Department say concerns over charging infrastructure, vehicle reliability, and cost discouraged participation.
Shortage of drivers
Finally, the reform plan also aims to tackle the shortage of professional taxi drivers. The ministry is exploring the possibility of bringing in workers from third countries while introducing lifelong training programs to improve standards and professionalism in the industry.
*This story was translated and edited from its Greek original.
