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Parliament on Monday approved Cyprus’ new tax framework, a long-awaited reform that the government says will ease the burden on households, support families with children, and make the economy more competitive, without requiring citizens to suddenly become tax experts.
Finance Minister Makis Keravnos welcomed the vote, calling it the result of months of intense work and one of the key commitments made by President Nikos Christodoulides’ government before taking office.
“This is the culmination of a great and demanding effort,” Keravnos said, stressing that the reform is part of a broader push to modernize the economy, support entrepreneurship, and improve living standards.
What changes in plain terms
The new tax system will come into force on January 1, 2026. According to the government, its main goal is simple: make taxes fairer and spread the burden more evenly.
For ordinary people, especially families, the headline promise is lower pressure on household budgets. Keravnos said the reform significantly reduces taxes for individuals, with extra relief aimed at families with children, vulnerable groups and the middle class, the group the government describes as the backbone of the economy.
In short, the state is saying: less strain on family finances, more breathing room for everyday life.
Why the government says it matters
Beyond households, the reform is designed to strengthen the “real economy,” businesses that create jobs, while also making Cyprus more attractive to what officials call “productive and quality” foreign investment.
Keravnos argued that a fairer tax system doesn’t just help people at home but also improves Cyprus’ image abroad and boosts the country’s competitiveness.
A rare moment of broad cooperation
The finance minister went out of his way to thank a long list of contributors, from ministry officials and economists at the University of Cyprus to social partners and members of parliament.
He also praised the Finance Committee of the House and its chair, Christiana Erotokritou, noting that lawmakers were asked to study and vote on a complex reform under tight deadlines.
Special mention was made of parties that supported the bill and worked with the ministry to improve it before its final approval.
What happens next
While the reform has now passed, citizens won’t feel the changes immediately. The new rules are scheduled to take effect in just over a year, giving businesses and households time to prepare.
For now, the government’s message is clear: this is meant to be a tax system that works better for families, strengthens the economy, and sets Cyprus up for steady growth in the years ahead.
Whether it delivers on those promises is something taxpayers will be watching closely, calculators optional.
