Breaking news

Cyprus Aligns With EU Initiative To Tax Low-Value Imports

by THEFUTURE.TEAM

June 15, 2026

Overview

Cyprus will introduce a temporary flat fee of €3 per item on goods imported from outside the European Union starting July 1, 2026. The measure forms part of a broader EU customs reform and applies to low-value consignments worth up to €150 arriving from non-EU countries. It replaces the duty exemption that remained in place until June 30, 2026. Scheduled to remain in effect until July 1, 2028, the temporary charge will eventually be replaced by standard customs duties based on product categories.

Modernizing Customs Procedures

Introduced as part of the EU’s wider customs reform, the new rules are intended to modernize procedures through digitalization and improved data transparency. Under the previous system, exemptions for low-value imports helped limit administrative costs. Advances in electronic tracking and customs systems have reduced the need for such exemptions, according to the European Commission.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Ensuring Fair Competition And Consumer Safety

Concerns over product safety have also contributed to the changes. According to the European Commission, inspections carried out across the EU in 2025 found that more than 60% of tested low-value products failed to meet safety and compliance requirements. Items ranging from cosmetics and toys to electronic devices lacked proper documentation or labeling, while some products contained prohibited substances.

Besides raising concerns for consumers, non-compliant imports have created challenges for European businesses that operate under stricter regulatory standards. Authorities say the new regime is intended to establish more equal conditions for importers and domestic companies.

Future Implications And Enhanced Regulatory Measures

Additional measures will accompany the temporary fee. Mandatory product identifiers will be introduced on November 1, 2026, while voluntary declarations will be permitted from July 1, 2026. Exemptions will continue to apply to non-commercial gifts valued at up to €45 exchanged between private individuals, provided no payment is involved. Calculated on a per-item basis, the €3 charge will be included in the taxable value used for VAT purposes and will ultimately be borne by consumers.

Conclusion

The changes reflect broader efforts by the European Union to strengthen customs oversight and increase transparency in cross-border trade. Updated procedures are expected to improve the detection of non-compliant products while providing a more consistent regulatory framework for businesses operating within the EU market.

The Future Forbes Realty Global Properties

ECB Raises Deposit Facility Rate For First Time In Nearly Two Years

Economic Shift: ECB Reverses Years Of Declining Rates

The European Central Bank (ECB) confirmed its first interest rate increase in nearly two years, raising the deposit facility rate in response to inflationary pressures and geopolitical uncertainty. Marking a shift in monetary policy, the move follows a period of rate cuts aimed at supporting economic activity and easing financing conditions.

Reevaluation Of Bank Liquidity Strategies

Although the immediate impact will be felt by only part of the borrowing market, the decision carries broader implications for banks. During the period of lower rates, banks maintained significant amounts of excess liquidity with the ECB as returns on these funds declined alongside deposit rates. With the deposit facility rate increasing by 0.25 percentage points to 2.25% from 2.00%, returns on surplus liquidity are expected to improve.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Higher interest rates, however, could also increase borrowing costs and influence lending conditions across the banking sector.

Transitioning Investment Approaches And Market Dynamics

Banks had already begun diversifying the use of excess liquidity through investments in bonds and by expanding lending activities.

Successive reductions in the deposit facility rate from 3.00% at the end of 2024 through four consecutive cuts in early 2025 reflected a more accommodative policy stance as inflation pressures moderated.

Sectoral Impact And Future Outlook

Data from the ECB’s 2025 monetary policy report show that liquidity in the Cypriot banking system declined from €19.2 billion at the end of 2024 to €18.6 billion by the close of 2025. Despite the reduction, liquidity levels remained elevated. Outstanding loans increased from €27.6 billion to €31.7 billion, while deposits recorded a slight decline. Customer deposits continued to account for the vast majority of funding. By the fourth quarter of 2025, they represented 95% of total liabilities, highlighting their importance as the banking sector’s primary source of financing.

Changes in ECB rates are expected to influence how banks manage liquidity and allocate capital as monetary conditions evolve.