Cyprus is preparing changes to its taxi service framework, in what would be the first major update in more than two decades. According to details published by PhileNews, the proposed amendment to the Road Transport Law could increase the number of taxi licences from the current total of around 1,800 to between 3,200 and 5,600 over the coming years.
Aligning Regulation With Industry Realities
The initiative by the Licensing Authority aims to address issues that have been at the centre of public debate over the past three years. Among them are unauthorized operations, high licence rental fees, and shortages in taxi services. Those concerns led to protests, including a strike by professional drivers in March 2026. The proposal also draws on findings from a 2025 study conducted by Frederick University.
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Foundation Of The Reform: Five Strategic Pillars
The draft legislation introduces several measures aimed at reshaping the sector:
Combatting Unlawful Operations: Illegal passenger services will face administrative fines of €750 for drivers, €1,500 for owners, and €1,500 for intermediaries. Courts will also be able to temporarily suspend vehicle registrations.
Revamping License Allocation: A new formula would link the number of licences to population levels and tourist occupancy. The proposal also includes a 10% social quota for large families and parents of people with disabilities.
State Ownership Of Licenses: Taxi licences would move to state ownership, replacing the current system under which licences are often rented privately.
Legalizing Specialized Passenger Vans: The proposal introduces a category of “special rental vehicles” for group and hotel transfers.
Enhancing Digital Platform Accountability: Electronic intermediaries, including Bolt, would be required to register with the Department of Road Transport, appoint compliance officers, and ensure that only licensed taxis are used. Violations could result in fines of up to €50,000.
Transforming The Customer Experience
The proposed changes are also intended to affect the passenger experience:
Shortened Wait Times In Urban Centers: Additional licences are expected to address shortages in cities, including Nicosia and Limassol.
Modern And Eco-Friendly Fleets: The proposal calls for the use of new Euro VI or fully electric vehicles.
Enhanced Passenger Protection: Measures targeting illegal operators are intended to ensure that taxis operate legally and carry the required insurance.
Regulated Airport Services: Mandatory fare documentation for airport pickups would aim to address pricing concerns.
Streamlined Digital Bookings: Ride-hailing platforms would operate under a regulated framework.
Identified Gaps And The Road Ahead
Several issues are not addressed in the current proposal. No provisions have been included for wheelchair-accessible vehicles or specialised driver training for passengers with disabilities. The draft also does not include requirements for electronic payments or digital receipts.
Although the proposal calls for the use of electric vehicles, it does not provide for subsidies or charging infrastructure. The draft also stops short of addressing integration into broader Mobility as a Service (MaaS) frameworks. The proposed changes would represent a major update to Cyprus’ taxi sector. Further revisions, however, may be needed to address accessibility and other consumer-related issues.
