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 Unemployment Ticks Up 9.7% In September As Public Sector And Services Weigh On Labour Market

by THEFUTURE.TEAM

October 6, 2026

Cyprus recorded a 9.7% year-on-year increase in registered unemployment in September, with the largest pressures coming from public administration and defence, information and communication, and administrative and support services, according to figures released Tuesday by the Statistical Service of Cyprus (Cystat).

Registered Unemployment Climbs Year On Year

The number of unemployed persons registered at district labour offices reached 8,366 at the end of September, up from 7,624 a year earlier, an increase of 742 people.

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Month on month, however, the figure declined sharply from 12,385 in August, indicating a more mixed short-term picture.

The seasonally adjusted measure moved in the opposite direction, rising to 10,809 in September from 10,715 in August. That was also above the 9,895 recorded in September 2025.

Seasonally adjusted unemployment had stood at 10,082 in January, 10,095 in February and 10,292 in March before increasing to 10,565 in April. It then eased to 10,518 in May, edged up to 10,663 in June, slipped to 10,601 in July and reached 10,715 in August before climbing again in September.

Trade, Public Administration And Services Lead The Increase

By economic activity, wholesale and retail trade accounted for the largest number of registered unemployed in September, at 1,402, compared with 1,364 a year earlier.

Public administration and defence followed at 1,050, up from 866 in September 2025, while professional, scientific and technical activities rose to 855 from 780. Accommodation and food service activities also increased, reaching 815 from 768.

Information and communication saw one of the sharper gains, rising to 549 from 432, while manufacturing increased to 506 from 453. Education accounted for 491 registered unemployed, compared with 422 a year earlier, and administrative and support service activities rose to 436 from 355. Financial and insurance activities also moved higher, to 407 from 375.

Construction was one of the few sectors to post a decline, falling to 394 from 419. Human health and social work activities increased to 299 from 285, while transportation and storage rose to 293 from 266 in September 2025.

New Entrants And Smaller Sectors Show Mixed Trends

The number of newcomers registered as unemployed fell to 268 from 280 a year earlier.

Elsewhere, other service activities rose to 215 from 188, while arts, entertainment and recreation stood at 170, almost unchanged from 169 a year earlier. Real estate activities increased to 128 from 92.

At the lower end of the scale, agriculture, forestry and fishing fell to 46 from 53. Water supply, sewerage and waste management declined to 16 from 21. Activities of extra-territorial organisations and bodies remained steady at 10, while activities of households slipped to nine from 10.

Electricity, gas, steam and air conditioning supply fell to four from nine, and mining and quarrying declined to three from seven.

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