Cyprus

According to 30 October 2026 Eurostat release, Cyprus recorded a tax-to-GDP ratio of 36.3% for fiscal year 2025, marking a 1.2 percentage point increase from 2024. The EU average rose from 40.2% to 40.7% over the same period. The data encompasses all compulsory payments to general government, including VAT, corporate income tax, personal income tax,

In an opinion piece published 29 October 2026, tax advisory specialist Varnavas Nicolaou outlines a framework for integrating traditionally siloed tax compliance functions — including VAT reporting, corporate tax filing, transfer pricing documentation, and DAC6 mandatory disclosure obligations — into a unified governance model. The article references the Cyprus Tax Department’s Digital Transformation Strategy 2024-2027

On 29 October 2026, Cyprus Business News published an analytical feature examining the implications of the 2026 tax reform package for corporate structures operating in Cyprus. The reform introduces amendments to the Income Tax Law, Special Defence Contribution provisions, and intellectual property (IP) regime alignment with OECD BEPS Action 5 standards. Effective from 1 January

On 29 October 2026, the Cyprus Tax Department announced a temporary suspension of the Tax For All (TFA) portal to carry out essential system upgrades. The suspension aims to enhance platform stability, introduce new functionalities, and improve the overall user experience for taxpayers and tax professionals. During this period, access to TFA services — including

On 28 October 2026, the Cyprus Tax Department announced the collection of €50 million from multinational enterprises under the OECD Pillar Two global minimum tax framework. This marks the first significant revenue intake since Cyprus transposed the EU Directive 2022/2523 into national law, effective for fiscal years starting on or after 31 December 2023. The

In a statement on 28 October 2026, the Head of the Cyprus Tax Department, Marios Michael, confirmed that individual and corporate taxpayers may submit their 2025 income tax returns until 30 November 2026 without incurring interest or late-filing surcharges. This extension applies to both the simplified return (Form T.F.1) and the full accounts-based return. The

On 27 October 2026, the Cyprus Tax Department issued an official announcement regarding the enactment of legislation implementing the OECD/G20 Pillar Two Global Minimum Tax (GMT) rules. The law, aligned with EU Directive 2022/2523, establishes a 15% minimum effective tax rate for constituent entities of multinational enterprise (MNE) groups and large-scale domestic groups with annual

On 23 October 2026, the Cyprus Consumer Protection Service (CPS) published an inspection report revealing that 22 petrol stations across the island failed to pass on the full excise duty reduction on heating oil to consumers. The tax cut, implemented by the Ministry of Finance effective 1 October 2026 under the Excise Duty Law (N.

As of 23 October 2026, negotiations on the European Union’s 2028-2034 Multiannual Financial Framework (MFF) have reached a deadlock, prompting the European Commission to advance a legislative package introducing new EU-level own resources. The proposal, detailed in COM(2026) 450, includes three pillars: a revised Corporate Tax Base (CTB) directive imposing a minimum 15% effective tax

The Cyprus House of Representatives voted on 23 October 2026 to reduce the excise duty on heating oil from EUR 0.33 to EUR 0.28 per litre, effective 1 April 2027, in response to a 40% year-on-year increase in global crude oil prices. The amendment to the Excise Duty Law (N. 395/2026) was passed with a