New Tax Reform with Big Changes
Effective January 1, 2026, Cyprus will implement a sweeping tax reform package designed to benefit individual taxpayers and strengthen government revenue. The reform is expected to generate tax savings of approximately €5,000,000 for individual taxpayers across the country.
At the same time, the government anticipates a 6% increase in corporate tax revenue, bringing total corporate tax collections to an estimated €50,000,000. This dual impact reflects a strategic effort to balance relief for individuals with sustainable fiscal growth.
Cyprus Joins the Schengen Treaty
In a major geopolitical development, Cyprus will officially join the Schengen Area on January 1, 2026. This move is expected to:
- Facilitate international travel for both citizens and visitors
- Attract foreign investment by improving mobility and business access
- Boost tourism revenue, which experts predict will rise by 4% to €4 billion
For businesses and investors, Cyprus’s Schengen accession enhances its appeal as a gateway to the European market, offering new opportunities for expansion and cross-border collaboration.
New Housing Plans for Cyprus Citizens
The Cyprus government has also announced new housing initiatives aimed at supporting citizens who meet specific eligibility criteria. These plans include:
- Assistance for first-time property buyers
- Support for rental housing
- Subsidies and financial aid for qualifying applicants
Applications for these housing programs can be obtained from district administration offices. The initiative is part of a broader effort to improve housing accessibility and affordability across the island.
What This Means for You
Whether you’re a resident taxpayer, a business owner, or an international investor, these changes signal a transformative period for Cyprus. From tax savings to enhanced travel access and housing support, the reforms offer tangible benefits—but also require strategic planning.
How Cyprus Tax Accounting Can Help
At Cyprus TX Accounting, we provide expert guidance on:
- Navigating the 2026 tax reform
- Maximizing individual and corporate tax benefits
- Preparing for Schengen-related business opportunities
- Understanding eligibility for housing plans
Our team of experienced Cyprus accountants and tax advisors is here to help you make informed decisions and stay compliant in a changing regulatory landscape.
Contact Us
For personalized advice and strategic planning, reach out to Cyprus Tax Accounting today.
