Cyprus will have new tax rules. These changes start in 2026. The main idea is to help families. People will not pay tax on the first €22,000 they earn. This will help many people save money.
A new family tax system will also start. It might be a little hard. People may find it difficult for 2027 taxes.
The Cyprus Tax Department is making these changes. They want taxes to be fair. The definition of "family" is changing. It includes couples with children. Single parents are also included.
Families will get more money for children. The first child gets €1,000. The second child gets €1,250. Other children get €1,500. People can also get money back for rent. They can get money back for mortgage interest.
Employers will help with the new system. They will send information to the tax office. This starts in January 2026. The Tax Department will also have a website. It will help people understand the rules.