The Cyprus Securities and Exchange Commission (CySEC) has issued a decisive circular to all regulated entities, reinforcing obligations under the European Council’s 19th package of restrictive measures adopted on October 23. These measures were introduced to counteract actions that undermine the territorial integrity and sovereignty of Ukraine.

Redefined Ownership And Control

Significantly, the circular clarifies the definitions of “owning” and “controlling” a legal person or entity. Under these updated guidelines, “owning” is defined as possessing 50 percent or more of the proprietary rights or having a majority interest—even when holding less than 50 percent, if the designated person is the largest shareholder. For instance, a designated person with a 40 percent stake in an entity may be considered to have majority interest if the remaining shares are divided equally among three shareholders.

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Implications For Crypto And Financial Services

The renewed framework impacts a wide range of financial institutions, including Cyprus Investment Firms, Administrative Service Providers, UCITS and AIF management companies, crypto asset service providers, and small AIFMs. Entities are reminded that control may be established by factors such as the power to appoint or control the majority of management and voting rights, thereby necessitating a thorough analysis of all relevant factors.

Expanded Prohibitions And Economic Measures

The restrictions extend to include a prohibition on providing crypto-asset services, issuing payment instruments, acquiring payment transactions, initiating payments, or issuing electronic money to Russian or Belarusian nationals, residents, or entities.

Moreover, a new article addresses Russia’s special economic, innovation, or preferential zones, banning the acquisition, participation, or extension of ownership in such regions. This includes the creation of new joint ventures, branches, representative offices, or entering into new contracts involving the supply of goods, services, or intellectual property linked to these zones. By January 25, additional sanctions will be implemented to preclude any ongoing ownership or contractual partnerships related to these zones.

Mandatory Compliance And Reporting

In alignment with these measures, entities are required to freeze all funds and economic resources of any legal person, entity, or body that is owned or controlled by a designated person. Exceptions are provided for activities essential to public health, humanitarian needs, or critical energy supplies, including natural gas and certain raw materials.

Furthermore, CySEC has mandated that regulated entities affected by these changes must notify the commission within one month by emailing details at contact@cysec.gov.cy. Entities are strongly encouraged to review and implement targeted compliance measures in accordance with EU Best Practices and the European Commission’s Consolidated FAQs.

Conclusion

By issuing these amendments, CySEC underscores its commitment to uphold rigorous regulatory standards in the face of evolving geopolitical challenges. This decisive action prompts regulated entities to reassess business relationships and operational frameworks, ensuring alignment with the strategic objectives of the European Union’s sanctions policy.

According to the Cyprus Statistical Service, October 2025 saw inflation ease by 0.3% in challenging economic conditions. The Consumer Price Index (CPI) increased to 118.25 units from 117.71 units in September, marking a monthly rise of 0.54 units, though the annual trend is in decline.

Sectoral Shifts: Electricity And Agricultural Products Under Pressure

When compared with October 2024, the service sector experienced the highest positive change at +3%. In stark contrast, the electricity segment plummeted by 7.5% and agricultural products dropped by 2.6%. Notably, electricity registered the largest monthly improvement with a 1.7% increase over September 2025.

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Boosts In Dining And Education

The data reveals that Restaurants and Hotels recorded the most significant year-over-year increase at +4.4%, closely followed by Education at +3.5%. Conversely, Apparel and Footwear experienced a substantial decline of 6.7%, while Food and Non-Alcoholic Beverages fell by 2.1%. On a monthly basis, Apparel and Footwear surged by 3.6% and Education increased by 1.2%.

Year-To-Date Trends

From January through October 2025, the sectors recording the highest gains relative to the same period in 2024 were Restaurants and Hotels (+4.7%), Education (+3.7%), and Recreation and Culture (+3.3%). In contrast, Apparel and Footwear posted the steepest decline at –6.2%.

Impact Analysis On The CPI

A closer look at the annual CPI shift reveals that Restaurants and Hotels (+0.48) and Education (+0.16) contributed most positively. Meanwhile, Food and Non-Alcoholic Beverages (–0.52) and Apparel and Footwear (–0.51) were the largest detractors. On a monthly scale, Apparel and Footwear (+0.25) and the Housing, Water, Electricity and Gas sector (+0.12) played critical roles. Additionally, Food Services contributed an extra +0.50 on an annual basis, while negative effects were observed in Apparel Items (–0.43) and Electricity (–0.43).

Britons residing in Cyprus enjoy a sunny backdrop and a familiar legal setting, yet face intricate challenges with inheritance tax and succession laws. The United Kingdom’s transition from domicile-based inheritance tax to a long-term residence test, effective from April 2025, marks a decisive shift in taxing worldwide estates. Formerly, UK-domiciled individuals were taxed on their global assets, while non-doms were liable only for assets based in the UK. With the abolition of the deemed domicile concept, any person who has been a UK tax resident for 10 out of the previous 20 years now faces the full breadth of the tax.

The Cypriot Legal Environment And Forced Heirship

In stark contrast, Cyprus abolished inheritance tax entirely on January 1, 2000. However, British expatriates still encounter complexities, as the Double Tax Treaty between Cyprus and the UK applies only to income and capital gains tax. Moreover, Cypriot succession law mandates forced heirship through the Wills and Succession Law (Cap. 195), ensuring that spouses, children, or parents receive designated shares of the estate, thereby limiting discretionary testamentary freedom.

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Leveraging The EU Succession Regulation

The EU Succession Regulation (Regulation (EU) 650/2012) offers a crucial lifeline for Britons in Cyprus. This regulation allows an individual to elect the law of their nationality to govern succession matters. By explicitly choosing English law within a Cypriot will, a British national in Cyprus can effectively bypass the rigorous forced heirship constraints and retain full freedom in estate planning. Absent such a choice, the law corresponding to the deceased’s habitual residence at death would automatically apply.

Strategic Estate Planning In Practice

Practical scenarios underscore the importance of proactive planning. Consider a retired couple in Paphos with assets valued at approximately £900,000: by drafting a will in Cyprus that opts for the application of English law, they can ensure the free distribution of their estate to their children, while potentially avoiding the 40% IHT rate if the combined estate value stays within the £1 million threshold permitted for a married couple. In another instance, an expatriate with a £1.5 million estate spread between the UK and Cyprus could still be liable for inheritance tax on amounts exceeding the tax-free bands despite a will electing English law. Conversely, a long-term resident who no longer meets the UK’s long-term residence criteria can completely avoid IHT, provided the election for English law is made.

Conclusion

The landscape for Britons living in Cyprus is nuanced. While Cyprus offers a tax-free inheritance environment, its forced heirship rules impose limitations on estate planning. The United Kingdom’s enhanced, residence-based IHT regime further complicates matters by imposing a 40% tax on estates exceeding defined thresholds. For expatriates, the ability to choose English law under EU regulation becomes a critical tool in preserving testamentary freedom and mitigating potential tax liabilities. Comprehensive legal and tax planning is essential to ensure that an estate is transmitted according to one’s wishes while minimizing inheritances burdens.

The President of the Republic, Nikos Christodoulidis, has officially welcomed the commencement of discussions in the Parliamentary Economic Committee on a sweeping Tax Reform. He characterizes this initiative as one of the most significant structural shifts in recent decades, setting the stage for a tax system designed to be fairer and more modern.

Transitioning To A Fairer Tax System

According to the President, the proposed reform marks a fundamental transition towards a tax framework that is not only just but also adaptable to contemporary economic realities. Central to this initiative is the empowerment of households and businesses, offering them improved stability and promising long-term growth prospects. With this vision, the reform is expected to directly influence everyday life and enable a more sustainable economic future.

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Strengthening Social Cohesion And Middle-Class Support

The President emphasized that the tax reform aims to bolster social cohesion by providing significant relief to families and the middle class. For the first time in two decades, the tax exemption threshold will be raised to €20,500. Additionally, targeted deductions will be calibrated based on household composition and expenditure, ensuring that the policy benefits are tailored to individual circumstances.

Incentives For Businesses And Correcting Market Distortions

In a further effort to enhance the business climate, the reform proposes to reduce the taxation on actual dividends from 17% to 5% and eliminate the imputed distribution requirement. These measures are designed to correct longstanding market distortions and encourage reinvestment of profits into productive sectors, thereby strengthening the competitiveness of Cypriot enterprises.

Prudent Fiscal Policy And Steady Economic Growth

President Christodoulidis underscored that the government’s commitment to responsible fiscal management has paved the way for this comprehensive reform. In an environment highlighted by consecutive upgrades from international rating agencies, Cyprus is positioning itself decisively with a plan aimed at ensuring stable growth and low inflation. This methodical approach reminds one of a well-oiled machine that continuously refines its operations to achieve optimal performance.

A Future-Ready Tax Environment

Looking ahead, the President asserted that the ultimate goal is for all citizens and businesses to operate within a tax framework that is socially just, straightforward, and conducive to economic development by January 1, 2026. He concluded by remarking that a Cyprus poised for change demands a tax system that truly reflects its ambitions and potential.

According to recent analysis by market intelligence firm Omdia, global revenues from online video and traditional TV markets are poised to hit the $1 trillion mark annually by 2030. This ambitious forecast reflects a significant shift where the growth engine is online video, even as traditional pay TV continues its gradual decline.

Online Video Leading The Charge

The global video streaming segment is expected to generate approximately $214.6 billion in 2025, growing at an annual rate of 12.8%. Online video subscriptions alone will command 77% of this revenue share, underscoring the platform’s increasing dominance in a market that previously relied heavily on traditional TV services.

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Advertising: A Key Growth Catalyst

Premium advertising revenue—whether delivered through hybrid SVOD/AVOD models, native AVOD, FAST, or streaming services by traditional broadcasters—is anticipated to rise by 15.6% from 2024, reaching $42.1 billion worldwide. This growth is driven by a gradual consumer migration toward advertising-supported models, reinforcing the investment case for integrating ad revenues into subscription frameworks.

Industry Insights And Strategic Implications

Adam Thomas, Practice Leader at Omdia, emphasizes that while global pay TV revenues remain substantial, they are not growing as briskly as their digital counterparts. Thomas observes, “Traditional pay TV is in slow decline, but its long-term revenue contribution remains significant.” This nuanced view is further supported by Tony Gunnarsson, Principal Analyst at Omdia, who notes that streaming, primarily driven by subscriptions, is approaching mass-market penetration. However, he anticipates a deceleration in annual growth rates for premium streaming as the market matures.

A Hybrid Future And New Revenue Streams

Gunnarsson points out that the integration of advertising tiers into streaming services—often seen as an early-stage experiment—has yielded significant returns. The latest research indicates that by 2030, advertising will account for an increasing portion of the revenue mix; for instance, advertising on the combined “big five” US SVOD platforms (including Netflix, Amazon, Disney, HBO Max, and Paramount) is projected to contribute $24.3 billion, raising its share from 13% in 2025 to 20%.

As digital transformation continues to reshape media consumption, these insights offer strategic value to investors and stakeholders. The synthesis of subscription and advertising revenues points to a resilient business model that is well-positioned to thrive in an evolving market landscape.

Finance Minister Opens Door to Adjusted Income Limits

In a decisive parliamentary session marking the commencement of discussions on the proposed tax reform legislation, Finance Minister Makis Keravnos introduced the concept of revising the annual family income thresholds used to qualify taxpayers for additional deductions. This move signals a willingness to reconsider eligibility criteria to better reflect the evolving economic landscape.

Structured Tax Brackets and Expanded Relief Measures

The proposed reforms outline a significant adjustment in tax-free allowances and progressive tax brackets. The tax-free threshold is set to rise to €20,500, with additional incremental increases based on factors such as the number of children, students, and existing housing loans. Under the new scheme, incomes from €20,501 to €30,000 would be taxed at 20%, those between €30,001 and €40,000 at 25%, incomes from €40,001 to €80,000 at 30%, and earnings exceeding €80,000 would face a 35% rate. Notably, some taxpayers will only be able to claim further relief if their annual income does not exceed €80,000, although Minister Keravnos mentioned that an increase to €90,000 is also under consideration.

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Family-Based Deductions and Detailed Relief Structures

The legislation places special emphasis on family composition, offering additional tax exemptions accordingly. Households with a gross annual income of up to €80,000 qualify, with the threshold raised to €100,000 for larger families. More detailed deductions include a €1,000 annual reduction for each spouse, partner, or sole earner for every dependent child and student, doubling to €2,000 for single-parent families. Furthermore, taxpayers may avail an annual €1,500 deduction for interest on loans for primary residences or rental expenses, and an additional €1,000 deduction for capital expenditures related to energy upgrades and electric vehicle investments, which is transferable over the following four years.

A Strategic Adjustment to National Fiscal Policy

By considering an increase in the income threshold and refining tax brackets, the government aims to balance fiscal discipline with enhanced support for families. This initiative not only bridges the gap between economic realities and tax policy but also reflects an adaptive approach to managing public finances in challenging economic times.

According to recent data released by Cystat, Cyprus witnessed a robust 4.2 percent increase in total motor vehicle registrations during the first ten months of 2025, climbing from 42,930 to 44,732 units. This growth underscores the island nation’s evolving automotive landscape as consumer demand shifts towards greener technologies.

Rising Demand For Low-Emission Technologies

The report highlights that passenger saloon car registrations grew by 4.0 percent, reaching 34,782 units. A notable detail is that 37.2 percent of these vehicles are brand new, while the remaining 62.8 percent are pre-owned. Moreover, rental car registrations surged by an impressive 33.8 percent to 4,866 units. Such trends indicate that both individuals and businesses are increasingly favoring environmentally friendly vehicle options.

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Hybrid And Electric Models Gain Ground

A deeper dive into the data reveals a discernible consumer tilt away from traditional fuels. The market share of petrol-powered passenger cars dropped to 42.5 percent from 49.5 percent, with diesel models also receding to 8.6 percent from 10 percent. In contrast, electric cars experienced a modest growth from 3.8 percent to 4.8 percent, and hybrids soared from 36.7 percent to 44.1 percent. Nearly half of all new passenger saloon car registrations thus comprise hybrid or fully electric models, a milestone that signals Cyprus’ commitment to low-emission mobility.

Growth Across Commercial Vehicle Segments

Commercial segments were not left behind. Motor coaches and buses increased from 125 to 167 units, while the goods conveyance category expanded by 6.6 percent, reaching 5,142 units. Within this segment, rental vehicles, light goods vehicles, and heavy goods vehicles recorded gains of 23.3 percent, 6.6 percent, and 3.1 percent respectively. Notably, road tractors maintained steady numbers, and motorcycles over 50cc increased by 17.0 percent, reflecting diversified growth across all vehicle types. Conversely, mopeds under 50cc saw a significant decline, falling from 627 to 190 units.

October 2025: A Snapshot Of Accelerated Growth

Focusing on October 2025, total vehicle registrations reached 4,520—a 9.9 percent increase from October 2024’s 4,111 units. Passenger saloon cars alone spiked by 11.7 percent, further underscoring the sustained momentum of the market.

Conclusion: Steering Towards A Sustainable Future

The latest figures clearly indicate that consumer preferences in Cyprus are undergoing a powerful transformation, increasingly favoring hybrid and electric vehicles over traditional petrol and diesel models. This shift not only supports the nation’s environmental goals but also positions Cyprus’ automotive market at the forefront of low-emission innovation in the region.

President Nikos Christodoulidis has indicated that Greece is on the verge of announcing pivotal energy developments. In a series of high-level discussions with American companies and neighboring states, the President affirmed that substantial progress has been made on the full spectrum of energy issues.

Robust U.S. Engagement

During a luncheon hosted by the Ambassador of the United Arab Emirates at his residence in Nicosia, President Christodoulidis elaborated on the intensive consultations. When questioned by reporters about the pronounced American interest—following an agreement signed today in Greece that involved U.S. entities, as detailed in this report—he underscored that the talks with the United States and regional partners are both strategic and multilayered.

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Strategic Energy Diplomacy In The Eastern Mediterranean

These remarks emerge at a time of heightened energy diplomacy across the Eastern Mediterranean. Nicosia is working diligently to enhance its role as a key regional energy hub. The anticipated announcements are expected to reshape the energy landscape, reinforcing Greece’s commitment to a more integrated and forward-looking energy strategy.

Cyprus is currently experiencing a period of robust economic expansion and fiscal balance. Fiscal Council President Michalis Persianis highlighted in the 2024 activity report that the nation is poised to maintain growth around 3 percent, driven by widespread sectoral contributions. State revenues are climbing steadily, even outperforming forecasts adjusted for inflation and general expansion.

Emerging Risks In A Period Of Prosperity

Despite these favorable conditions, Persianis warned that apparent stability could be masking significant long-term risks. He noted that while employment indicators remain strong, a further drop in unemployment could serve as an early warning signal rather than a celebratory milestone. The sustained zero inflation during this high-growth phase exemplifies both the nation’s resilience and the subtle challenges that accompany prosperous times.

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Preparing Fiscal Space And Strategic Flexibility

Central to the Fiscal Council’s mandate is managing the nation’s debt trajectory, which remains on a downward path with a target of falling below 60 percent of GDP by 2025. According to Persianis, one of the Council’s key objectives is to preserve sufficient fiscal space. This flexibility is essential for governments to implement decisive measures when economic conditions require fiscal intervention. He emphasized that the current inflexibility in state expenditures—particularly indiscriminate social spending—limits available policy options and can entrench pro-cyclical dynamics.

Infrastructure, Climate, And Strategic Institutional Upgrades

Persianis underscored the urgent need to address structural weaknesses in vital infrastructures such as water supply, public transport, and energy. Challenges posed by climate change, which has transitioned from a theoretical scenario to a tangible reality, demand significant investment and forward-thinking strategies. His analysis also pointed to external uncertainties—from geopolitical turmoil to rapid technological advancements—that could reshape fiscal dynamics in coming years.

Long-Term Vision And Institutional Readiness

The Fiscal Council’s report calls for proactive, medium- to long-term strategies to safeguard Cyprus from future crises. While current surpluses offer a window of opportunity, Persianis reminded decision makers that easy times can mask the risks of complacency. He stressed the importance of enhanced analytical capacity and strategic planning within the Council to provide decisive guidance as external pressures intensify.

Upcoming Initiatives And Regional Cooperation

Looking forward, the Fiscal Council is organizing a thematic conference under the auspices of the European Network of Independent Fiscal Institutions (EU NIFI) in early 2026. This event, set against the backdrop of Cyprus’s forthcoming Presidency of the European Commission, underscores the critical role of institutional collaboration for broader fiscal reform and policy coordination across the European Union.

In summary, while Cyprus currently enjoys impressive economic health, the Fiscal Council’s leadership warns that significant challenges lie ahead. The nation’s ability to maintain fiscal discipline and implement strategic reforms will be pivotal in navigating the evolving global and domestic landscapes.

As the private tech market reaches unprecedented heights—with titans like OpenAI, SpaceX, Anthropic, and Stripe achieving astronomical valuations—PitchBook has unveiled an AI-powered solution designed to streamline market analysis. The new tool, known as PitchBook Navigator, leverages artificial intelligence and deep data insights to deliver real-time information based on user prompts.

Seamless Access To Critical Data

The Navigator eliminates the need for manually searching through extensive company profiles by offering an interactive AI assistant that answers queries regarding deal specifics and market trends. In a strategic integration with OpenAI, PitchBook is also enabling subscribers to retrieve information directly through ChatGPT. This initiative marks a significant enhancement in accessing private market intelligence.

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Bridging Data With Expertise

Underpinned by a rich repository of data and combined with both artificial intelligence and human insight, the Navigator is set to provide a reliable and comprehensive view of market developments. According to Thomas Van Buskirk, executive vice president of technology and engineering at PitchBook, “AI is transforming every corner of business, and after nearly two decades building the foundation of reliable, comprehensive data, PitchBook is uniquely positioned to lead this new era of private market intelligence.” Scheduled to launch for subscribers later this November, the tool reflects a broader trend in tech-driven market analysis.

Investors Capitalize On Private Market Opportunities

The rollout arrives at a time when traditional financial firms are aggressively moving into the private market arena. Recent moves include Charles Schwab’s $660 million acquisition of Forge Global, as well as Goldman Sachs’ purchase of venture firm Industry Ventures and Morgan Stanley’s planned acquisition of private shares platform EquityZen. These strategic investments underscore the dynamic shift and increasing appetite for private market deals.

Strategic Integrations and Industry Leadership

PitchBook’s recent partnership with Anthropic to integrate its private market data with the AI system Claude further cements its role as an industry leader in market intelligence. As the private market environment evolves, these innovative integrations position PitchBook at the epicenter of data-driven decision making.