Cyprus's parliament has voted for important tax reforms. These changes will start on January 1, 2026. The government strongly supports these new rules. They hope to help families with money. They also want to make Cyprus a better place for business. The reforms were approved by most of the parliament.
A main part of the plan is changing income tax. The amount of money you can earn before paying tax is going up. People can now earn €22,000 each year without tax. This is more than the old €19,500. New tax rates will also apply to different income levels. Higher earners will pay a bigger percentage of their money.
Families will get new tax help. They can get money off their taxes for children. Families with one child get €1,000 off. Families with two children get €1,250 off. More children mean bigger savings. There are also extra savings for spouses. These help with house costs and green projects.
The Finance Minister, Makis Keravnos, said this was a big job. He thinks it will help families' money. About 160,000 people in the middle class should save money. Some could save €500 to €2,000 each year. For example, someone earning €40,000 might save €885.
The reforms also help businesses. They want to bring good foreign companies to Cyprus. The tax rate for companies will be 15%. However, taxes on dividends will be much lower. This should make Cyprus more attractive for businesses.