Cyprus News & Insights
Latest from Cyprus — Tax, Corporate, Sanctions & Compliance
Curated short briefings on the developments that matter to founders, investors and multinational groups operating in Cyprus.
GeneralThe Cypriot Cabinet has endorsed a new initiative, proposed by the Deputy Ministry of Tourism, to advance the circular economy within the hotel and tourist accommodation sector for 2026–2029. This plan aims to integrate sustainable business practices, optimize resource utilization, reduce waste, and improve the competitiveness of tourism enterprises through various measures including consulting services, training, and research. This program continues a previous measure under the Recovery and Resilience Plan and is a joint effort with the Federation of Employers and Industrialists.
GeneralCyprus has officially registered its initial social enterprises, with three already listed and two more nearing completion. These entities, established under 2023 legislation, are categorized as general-purpose or integration enterprises, with the latter focusing on employing individuals with disabilities. Social enterprises must generate at least 70% of revenue from business activities and reinvest a significant portion of their profits.
GeneralCyprus is dispatching two firefighting aircraft to France in response to a request from Paris to help combat ongoing wildfires. These aircraft, which are air tractors, are leased to Cyprus by the European Union through the RescEU Mechanism and are normally stationed in Cyprus. The RescEU Mechanism is a European initiative designed to provide civil protection resources to member states facing significant disasters.
GeneralAccording to a PhileNews report, Cyprus is projected to become the fourth leading global destination for wealth migration by 2026. This assessment indicates a notable increase in the country's appeal for high-net-worth individuals seeking new residencies.
GeneralCyprus faces the potential loss of European Union recovery funds due to concerns surrounding a fast-tracked bill to establish a business development bank. The European Commission has reportedly expressed reservations about the draft law, suggesting it may not align with the agreed-upon conditions for receiving the funds. Lawmakers are currently debating the proposed legislation.
GeneralThe Central Bank of Cyprus projects that the nation's economic growth will gradually slow down, reaching 2.8% in 2024, followed by 2.9% in 2025, and a further decrease to 2.8% by 2026. This anticipated moderation follows a robust expansion of 4.9% in 2023, primarily fueled by strong domestic demand, particularly in private consumption and investment.
GeneralCyprus experienced a rise in its unemployment rate during June, reaching 9.9%. This increase is primarily attributed to a downturn in the tourism sector, compounded by ongoing geopolitical tensions impacting the region.
GeneralGeopolitical events are anticipated to impede Cyprus's economic expansion, as detailed in a recent Central Bank economic bulletin. This projection for 2026 considers the impacts of ongoing conflicts and regional instability. The tourism sector, consumer prices, and trade relationships are expected to be particularly affected.
GeneralRecent reports in Israeli media indicate a slow but steady recovery in tourism to Cyprus. This development suggests an improving trend for the Cypriot tourism industry, as observed by international outlets.
GeneralPresident Nikos Christodoulides affirmed that state investment in the Cyprus Institute of Neurology and Genetics (CING) is a deliberate and ongoing policy choice, noting its crucial role in the nation's healthcare and research landscape. The President inaugurated CING's new building, a €31 million project co-financed by the Republic of Cyprus and the European Investment Bank, highlighting it as a significant investment in scientific research and specialized healthcare services.
GeneralThe first phase of reforms to Cyprus's disability benefits has been approved, introducing new allowances and increased payments for individuals with disabilities. This initiative aims to enhance financial support for disabled persons across the country.
GeneralCyprus and Sweden have updated their double taxation convention through a new protocol. This revision incorporates standards from the OECD's Base Erosion and Profit Shifting (BEPS) initiative, aiming to prevent tax avoidance and ensure fairer tax collection.
GeneralAn analysis suggests that the economic fallout from a potential US-Iran conflict would be less severe than the losses experienced during the 1979 oil shock. This comparison provides context for the potential financial implications of present-day geopolitical tensions.
Sanctions & AMLThe European Court of Justice (CJEU) recently ruled on the interpretation of 'operator' within EU Regulation 833/2014, which prohibits broadcasting content from sanctioned Russian entities. The Court determined that 'operators' are not limited to those acting for profit, disagreeing with the European Commission's prior guidance. This ruling suggests a broader application of the broadcasting prohibition, extending to individuals who may receive donations but do not operate commercially.
Cyprus TaxThe Ministry of Finance has commented on a recent Financial Wellbeing Institute survey regarding the 2025 Financial Wellbeing Index. The survey indicated an overall increase in the index compared to 2024, with improvements across all 14 contributing areas. However, the ministry acknowledged that some citizens still face challenges like the energy crisis and rising living costs, and express concerns about retirement planning.
Cyprus TaxCyprus's Minister of Finance expressed profound sorrow regarding the death of Nikos Siakolas. The minister acknowledged Siakolas' significant contributions to the socioeconomic development of Cyprus, highlighting his entrepreneurial vision and philanthropic endeavors.
Cyprus TaxCyprus and Sweden signed a protocol in Nicosia to update their existing double taxation agreement concerning income taxes. This amendment integrates minimum standards from the OECD's Base Erosion and Profit Shifting (BEPS) initiative and includes provisions for exchanging tax information, aiming to enhance Cyprus's appeal as an international business hub.
The protocol will become effective upon the completion of ratification procedures by both nations, addressing constitutional issues Sweden faced regarding the Multilateral Instrument (MLI) and reinforcing tax transparency and compliance.
Cyprus TaxThe Cyprus Tax Department has issued an announcement pertaining to rental income. This notification is available as a downloadable PDF document from their official website.
GeneralCyprus and Sweden have signed a protocol to update their Convention for the Avoidance of Double Taxation, originally established in 1988. This amendment incorporates minimum standards from the OECD's Base Erosion and Profit Shifting (BEPS) initiatives, alongside other mutually agreed modifications. The protocol addresses challenges Sweden faced in implementing the Multilateral Agreement (MLI), offering a direct bilateral approach to integrate BEPS provisions.
GeneralAccording to Eurostat data, Cyprus experienced a €1.3 billion current account deficit in the first quarter of 2026. However, during the same period, the country's services account recorded a surplus of €1.2 billion. This services surplus follows a trend of varying current account deficits and services surpluses observed throughout 2025.
GeneralCyprus's industrial turnover experienced a 4.6% rise in April 2026, marking the second consecutive monthly increase compared to the previous year. The Industrial Turnover Index reached 143.1 points in April. From January to April 2026, the index showed an overall 3.4% growth from the same period in 2025, with increases noted across various sectors including manufacturing, mining, water supply, and electricity.
GeneralThis article from Philenews lists various events and activities available on Friday, July 3rd. It includes a range of options for entertainment and engagement for the day.
GeneralThis Philenews excerpt outlines the various content categories available on their English-language portal, with a focus on their 'Economy' section. It details sub-sections like 'Business' and 'Economy' within this category, alongside other topics such as 'Local News,' 'Politics,' 'World,' and 'Whats On.' The listed articles within the 'Whats On' section briefly cover cultural and event-related news.
GeneralA Cypriot artist recently performed and presented visual art at Trinity College Dublin. This event in Ireland featured the artist's work, which included themes related to performance art and LGBTQ+ representation, highlighting Cyprus's artistic presence on an international stage.
Sanctions & AMLVictims of terrorist attacks in Iraq have initiated legal action against British American Tobacco (BAT), alleging the company provided substantial assistance to a North Korean-Iranian-Hezbollah network. The claim asserts that BAT's actions, through previous dealings with a North Korean entity, indirectly supported the missile programs used in the attacks. This legal challenge follows the dismissal of earlier criminal charges against BAT related to US sanctions violations, which occurred after the company fulfilled a deferred prosecution agreement.
GeneralCyprus' Ministry of Finance reported an improvement in the Financial Wellbeing Index for 2025, with gains across all 14 indicators, signaling a general enhancement of citizens' financial stability. Despite this progress, concerns persist regarding the increased cost of living and the adequacy of retirement provisions. The government has introduced measures like tax reform, including revised tax brackets and increased tax-free income, and pension system reform to address these issues and foster financial literacy.
GeneralCyprus is investing in measures to improve occupational health and safety, as stated by government ministers at a global construction conference in Limassol. The event, discussing AI and sustainable construction, aims to reduce workplace accidents and will conclude with the adoption of a "Cyprus Declaration" to guide future safety efforts in the construction sector. Despite progress in overall accident reduction, the construction industry continues to have the highest rate of occupational incidents in Cyprus.
GeneralHouse prices in Cyprus saw a 1.6% increase in the first quarter of 2026 when compared to the preceding quarter. Year-over-year, prices rose by 3.4% in Q1 2026 compared to Q1 2025, according to Eurostat data. This annual growth reflects a slowdown from the 6.0% increase observed in the final quarter of 2025.
GeneralCyprus's seasonally adjusted unemployment rate dropped to 3.1% in May 2026, a decrease from 3.2% in April and 4.5% in May 2025. This reduction signifies a continued downward trend in unemployment over recent months, with the total number of unemployed individuals falling to 16,000 from 24,000 the previous year. Both male and female unemployment rates saw declines, with the EU and Euro area also experiencing stable or slightly reduced unemployment figures.
GeneralStarting July 1, the European Union will implement a €3 customs duty on small parcels entering the EU. This charge applies to all low-value items previously exempt from import duties. The change is part of a broader effort to standardize customs procedures and revenue collection across member states.
GeneralCyprus's tourism ministry anticipates that tourism-related revenue shortfalls will remain below 12% through the year 2026. This projection suggests that while the sector may not fully recover to pre-loss levels, the economic impact is expected to be managed within a specific threshold.
Sanctions & AMLThe Financial Action Task Force (FATF) recently hosted a global event, drawing over 1,600 participants, to launch its new roadmap for fighting fraud from 2026 to 2028. The event, led by the UK Presidency and new FATF President Giles Thomson, addressed the widespread impact of fraud on victims, financial markets, and national security. Discussions involved experts from public and private sectors, focusing on financial intelligence, information sharing, asset recovery, and international collaboration.
GeneralCyprus experienced an acceleration in its inflation rate, reaching 3.1% in June 2026, according to data from the Statistical Service of Cyprus. This marks the highest inflation recorded since October 2023, with significant annual price increases observed in transportation, housing, and food sectors. On a monthly basis, the Consumer Price Index (CPI) saw a 0.25% rise.
GeneralThe Cypriot government has launched a new online platform, gov.cy, to help citizens easily locate and access available public services and benefits. This portal aims to streamline the process of finding government support and information, improving accessibility for the public. The initiative seeks to modernize government interactions and enhance overall service delivery.
GeneralCyprus has implemented a new regulation requiring all rental payments to be conducted via electronic methods, effectively eliminating cash transactions for rent. This amendment is part of a broader tax reform initiative aimed at enhancing transparency and oversight in financial dealings. The change is intended to streamline tax collection processes and improve accountability within the rental market.
GeneralThis article highlights the upcoming Minthis Music Festival scheduled for 2026. The piece positions the event as a notable future occurrence, indicating that planning and anticipation for the festival have begun. Further details regarding the festival's program or specific dates are not provided.
Cyprus TaxWhat the Cyprus IR63 employer certificate is, when it must be issued, what it contains and how it feeds into the TD1 personal income tax return.
Cyprus TaxHow the OECD-aligned Cyprus IP Box regime works in 2026 — qualifying assets, the nexus fraction, the 80% deemed deduction and documentation requirements.
Residency & CitizenshipHow Cyprus's Schengen accession, the Entry/Exit System (EES) and ETIAS in 2026 affect employers, non-EU staff, directors and cross-border service delivery.
Sanctions & AMLThe United States has officially labeled the 'Chone Killers,' an organization operating in Ecuador, as both a foreign terrorist organization (FTO) and a specially designated global terrorist (SDGT). This action signifies a significant classification of the group under US counter-terrorism frameworks.
Sanctions & AMLThe US Office of Foreign Assets Control (OFAC) has issued a reminder regarding the submission of blocked property reports. Entities holding assets blocked under OFAC regulations as of June 30, 2026, are required to submit a detailed report to OFAC by September 30, 2026. This mandate ensures compliance with sanctions programs by accounting for all frozen properties.
Sanctions & AMLThe United States has prolonged the temporary waiver on sanctions against Naftna Industrija Srbije (NIS), a Russian-owned oil refinery in Serbia, until July 31, 2026. This extension facilitates the refinery's continued crude oil processing while negotiations persist for the sale of a controlling interest in NIS from Gazprom Neft to Hungary's MOL Group. The U.S. also granted MOL Group a specific license extension to continue these discussions.
GeneralCyprus's Council of Ministers has appointed a team of independent criminal investigators, led by former President of the Court of Justice of the European Union, Vassilios Skouris. The team will examine potential offenses based on allegations made by Makarios Drousiotis in his book "Mafia State" and findings from the Anti-Corruption Authority. This decision, in accordance with the Criminal Procedure Law, aims for a thorough and objective investigation within established legal frameworks.
GeneralProperty values in Cyprus continued an upward trend during the first quarter of 2026, with the House Price Index (HPI) showing a 3.4% increase compared to the same period in the previous year. Quarter-over-quarter, prices rose by 1.6%. Both newly constructed and existing homes experienced price appreciation.
GeneralThe Cypriot government's primary objective is to hold a broad informal meeting on the Cyprus problem this summer, according to Government Spokesperson Konstantinos Letymbiotis. He noted that the UN Secretary-General's Personal Envoy, Maria Angela Holguin, recognizes the EU's role in the UN's efforts, a point also supported by recent joint statements from EU officials and the Turkish Foreign Minister. The government seeks this meeting not as an end in itself, but as a platform to announce the resumption of negotiations for a Cyprus solution.
Sanctions & AMLThe US Financial Crimes Enforcement Network (FinCEN) has issued an updated alert concerning fuel smuggling operations conducted by cartels based in Mexico, specifically mentioning the Cartel de Jalisco Nueva Generacion (CJNG). This recent warning builds upon a previous alert issued by FinCEN in May 2025, providing further information on these illicit schemes.
Sanctions & AMLThe European Union has issued a statement concerning the alignment of non-EU countries with its sanctions against Russia. In connection with its Regulation (EU) 2024/2642 on hybrid threats, the EU has also added ten individuals and one entity, all of whom are associated with Russian propaganda activities, to its sanctions list.
Sanctions & AMLThe United States has reportedly lifted export controls previously placed on Anthropic. These controls had restricted foreign nationals in specific locations from accessing Anthropic's AI models, including Fable 5 and Mythos 5.
GeneralCyprus' annual inflation rate is estimated to have risen to 4.0% in June, up from 3.5% in May, as reported by Eurostat's flash estimate. This represents a monthly increase of 0.8%. The country's annual inflation has shown an upward trend in recent months, climbing from 1.2% in January to its current June figure.
GeneralAs of July 1, 2026, all rental payments for immovable property in Cyprus must be conducted through electronic methods, such as bank transfers, debit or credit card payments, or other recognized electronic means. This requirement applies universally to individuals and legal entities, regardless of the rental amount or property use. Landlords are prohibited from accepting rent payments in any other form.