Cyprus Embraces Tax Reforms, Yet Enforcement Improvements Remain Critical

by THEFUTURE.TEAM

September 19, 2025

Cyprus has emerged as a focal point in Europe’s evolving tax policy debate following a strategic two-day visit by the European Parliament’s Subcommittee on Tax Matters (FISC). High-level discussions with key government figures and industry leaders underscored both positive reforms and ongoing challenges in regulatory enforcement.

European Scrutiny and Strategic Engagement

During their visit on September 16 and 17, the FISC delegation met with House Speaker Annita Demetriou, members of the finance committee, and senior officials, including the Assistant Tax Commissioner. Interactions with prominent business associations—including the Cyprus Chamber of Commerce and Industry, the Employers and Industrialists Federation, the Institute of Certified Public Accountants of Cyprus, and the Cyprus Bar Association—highlighted the depth of the dialogue on reform and accountability.

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

Prioritizing Tax Evasion Prevention and Competitiveness

The delegation, led by Danish MEP Kira Marie Peter-Hansen, commended Cyprus for its recent efforts to align with European standards by dismantling complex corporate structures prone to tax evasion. However, Peter-Hansen emphasized that without robust resource allocation for enforcement, legislative changes alone are insufficient. She noted serious concerns regarding the potential misuse of tax residency rules and the golden visa scheme, reaffirming the need for a balanced approach that attracts investment while curtailing financial malpractices.

Legislative Reforms Aligned With EU Directives

Cypriot MEP Michalis Hadjipantelas has pushed for reforms aimed at simplifying the EU tax framework, particularly to ease the burden on small and medium-sized enterprises. He stressed that streamlining compliance and reducing bureaucracy are critical to enhancing competitiveness. Similarly, Christiana Erotokritou, President of the House Finance Committee, reiterated that Cyprus remains fully aligned with EU directives on tax evasion and anti-money laundering, while also addressing broader socioeconomic challenges, including affordable housing and high energy costs.

Future Outlook: Collaborative European Integration

Looking forward, Cyprus is poised to build on its recent reforms as it prepares for its EU Council Presidency. The FISC delegation expressed optimism about the country’s commitment to ongoing adjustments and sanctions that fully meet EU rules. With discussions already underway on critical topics such as green taxation and tobacco regulation, Cyprus has the opportunity to position itself as a transparent, competitive, and responsible hub for business and investment in Europe.

The Future Forbes Realty Global Properties

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

February 17, 2026

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

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

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

Breaking news