60% Of Coastal Businesses Fail Tax Compliance Checks

by News Editor

August 21, 2026

The Tax Department has found violations at 60% of more than 100 businesses inspected in Cyprus’s main coastal tourist areas, as authorities step up efforts to tackle tax evasion during the summer season.

Checks focused on sea sports and boat excursion operators, souvenir shops and catering businesses in Paphos, Ayia Napa, Protaras and Larnaca.

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Surprise Checks Find Receipt Violations

More than 100 unannounced inspections were carried out over the past two weeks, with 60 businesses found not to have issued receipts after selling goods or providing services.

Inspectors also found cases where receipts did not match the actual transaction value. Some businesses reportedly refused card payments for small purchases or accepted cash only, making it easier to conceal income.

The inspections are part of a business-sealing measure introduced last June and intensified during the peak tourist period.

Businesses Given Time To Comply

Businesses that break the rules initially receive a warning and 15 days to comply. A second warning provides another 15 days, followed by a final five-day deadline.

Failure to comply can lead to the premises being sealed. The Tax Commissioner can lift the seal once the business meets the requirements and receives a compliance certificate, while continued violations can result in closure for up to 20 days.

Follow-up checks have already shown that businesses previously found in violation changed their practices and began issuing receipts and accepting card payments.

Major Tax Debtors Next

The crackdown will now expand to businesses with tax debts exceeding €20,000. Authorities have identified around 500 businesses owing more than €1 million in taxes, with enforcement action expected in the coming weeks.

From January 1, 2027, the sealing measure will also cover failures to submit tax returns, VAT returns and tax and contribution withholding declarations.

Taxpayers have been given a year to settle outstanding liabilities and file overdue returns.

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Cyprus’ Strong Youth Employment Rate Still Does Not Guarantee Early Independence

by THEFUTURE.TEAM

September 16, 2026

Young people in Cyprus have a relatively high employment rate, but they leave the parental home later than the EU average, according to Eurostat data.

Cypriots left home at an average age of 27 in 2025, compared with 26.3 years across the EU. At the same time, 72.3% of people aged 20 to 29 in Cyprus were employed, well above the EU average of 65.5%.

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Strong Employment Does Not Mean Early Independence

Only nine countries recorded higher youth employment rates than Cyprus. Iceland led at 85.3%, followed by the Netherlands at 84%, Malta at 82.1%, Switzerland at 78.3% and Germany at 77%.

Norway recorded 76.5%, Ireland 76.1%, Denmark 74.8% and Austria 74.6%. Eurostat said countries where young people leave home earlier generally tend to have higher youth employment rates.

Southern Europe Sees Later Moves

Finland had the lowest average age for leaving the parental home at 21.4 years, followed by Denmark at 21.8 and Estonia and Lithuania at 22.7. Croatia recorded the highest average at 31.5 years, followed by Greece and Slovakia at 30.9. Spain and Italy both stood at 30.2 years.

Across the EU, the average has remained close to 26 since 2002, rising only slightly from 26.2 years in 2024 to 26.3 years in 2025.

Cyprus Labour Market Is Cooling

The figures come as Cyprus’ labor market shows some signs of easing, although demand for workers remains relatively strong by European standards.

Separate Eurostat data showed Cyprus had the EU’s largest annual decline in its job vacancy rate in the second quarter of 2026. The rate fell to 2.6% from 3.3% a year earlier, but remained above the EU average of 2.0% and the euro area average of 2.1%.

Cost Of Living Remains A Factor

Housing and other living costs can also affect how quickly young workers establish independent households. Eurostat reported that Cyprus’ household consumption price level was 89.2% of the EU average in 2025.

A relatively lower overall price level does not eliminate affordability pressures for people on modest incomes. For younger workers, the issue can be whether wages are sufficient to cover rent, utilities, food and other basic expenses.

Cyprus therefore combines relatively high youth employment with a later transition to independent living, suggesting that access to work and the ability to afford a separate household do not always move together.

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