Lawmakers in Cyprus are ready to approve new tax rules. These changes will make the country's tax system more modern. This should attract more foreign investors. The economy was mostly stable in November. There was a small drop in the main economic number. However, some parts of the economy feel more positive.
The new tax rules will start in 2026. Finance Minister Makis Keravnos is leading this plan. The goal is a fairer and better tax system. Middle-income people will have less financial pressure. The amount of income that is not taxed will increase. This will go from €20,500 to €22,000. Rules for child tax help will also change. Some tax brackets will be adjusted. Stamp papers will not be needed anymore. This will make things simpler for everyone.
However, there are some downsides. The tax on company profits will rise. It will go from 12.5% to 15%. This is to stop people seeing Cyprus as a "tax haven." The government hopes this will make Cyprus more transparent. They expect the tax changes to bring in the same amount of money. They have an extra €112 million now. They will need to watch the money carefully. This is to make sure they get the money they expect. People earning less than €19,000 a year may not see a benefit. Freelancers will need to show more proof of income. They will also have clearer rules for business costs.
The latest economic news shows a mixed picture. The main economic number dropped slightly in November. It was 104.0, down from 104.1 in October. Some sectors are not as confident. The services sector is doing worse. This is because businesses are not happy with their recent sales. However, retail, building, and industry are more optimistic. Retail sales are better. Building companies are getting more orders. Industry is also expecting more orders and production.
Consumer confidence has also grown. People feel better about their own money. They are more positive about the economy. They also plan to buy more big things. Economic uncertainty has gone down for two months. This is good for the economy. It helps people and businesses invest.
Cyprus is trying to balance these changes. The tax reform aims for a stronger system. The economy is a little down, but some areas are strong. The success of these changes depends on how well they are put in place. It also depends on creating a stable economy. This will help attract people and companies.