The world is getting ready for 2026. Many countries expect slow economic growth. However, there will be challenges and new chances. Cyprus is also changing its tax system. This plan will help its own economy. It will also make things easier for people living there. These global and national changes will affect many people's money.
Economists think the world economy will grow about 2.4%. This is not very fast. But it shows strength. New technology, like AI and green energy, is helping. These ideas can make businesses work better. They can also create new places to invest money. Supply chains are becoming more stable. Energy prices might also go down. However, there are problems. Countries have disagreements. Trade taxes are increasing. There is not much room for governments to spend more money. High national debt is also a worry.
Cyprus is making its own plan for 2026. The Tax Department is leading this. Sotiris Markides is the Tax Commissioner. The main goal is to help middle-class families. They will raise the amount of income that is not taxed. They will also use a new way to count family income. This will help families pay less tax. Partners must agree to share tax information. This is needed to calculate the total family income.
This new tax system in Cyprus will have big effects. The tax-free amount will go up to €22,000. There will be different levels for deductions. Families with two children or fewer can get more. Families with five or more children can get even more. Single parents have a limit of €40,000. Help for children will increase with each child. There are rules for who is considered a dependent child. The reform also helps with buying homes. People might get money back for mortgage interest or rent. Buying energy-efficient things or electric cars will also get tax relief.
Employers must help with these changes. From January 2026, they must give employee information. This includes other incomes and deductions. They will use a form called T.F.59. This helps with tax taken from pay. The Tax Department has a new website and a tax calculator. These will help people understand the new rules. The Tax Department said the system is "generous" but also "complex." Everyone needs to prepare. Cyprus hopes this tax change will work well. People and businesses must learn the new system. The world economy will continue its journey.