Cyprus Enacts Robust Tax Reform to Boost Foreign Investment And Business Growth

by THEFUTURE.TEAM

December 24, 2025

Parliament Endorses Landmark Tax Reform

Cyprus’ legislature has approved a comprehensive tax reform that marks a pivotal chapter in the nation’s economic evolution. According to Invest Cyprus, this decisive action both preserves and enhances the country’s reputation as a premier destination for business and foreign capital.

Enhancing Competitiveness Through Strategic Tax Adjustments

The new framework introduces several targeted reforms for legal entities. Key measures include the elimination of the deemed distribution of dividends, along with a reduction in the withholding tax on actual dividend distributions from 17% to 5%. Additional adjustments such as the abolition of stamp duty, broadened exemptions for capital gains tax, and more favourable stock option treatments, collectively underpin a reassured investment environment. A modest corporate tax increase from 12.5% to 15% further aligns the system with evolving economic needs.

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Investor Confidence And Long-Term Policy Vision

In a recent interview with InBusinessNews, Invest Cyprus chief executive Marios Tannousis emphasized that the reform fortifies the stability, predictability, and clarity indispensable to foreign investors. He noted that such a refined tax framework is foundational for Cyprus’ sustained economic appeal, extending the country’s competitive edge well into 2026 and beyond.

Collaborative Efforts Driving Economic Resurgence

Expressing appreciation for the role of both public bodies and private sector stakeholders, Tannousis commended the government, the Finance Ministry, and parliament for their collaborative efforts. This reform not only resolves a long-standing issue but also ushers in a renewed era poised to significantly bolster foreign investment and entrepreneurial growth in Cyprus.

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Cyprus Fuel Prices Jump 20.5% As Energy Costs Rise Across The EU

by THEFUTURE.TEAM

June 24, 2026

Cyprus recorded a 20.5% year-on-year increase in the prices of fuels and lubricants for personal transport in May 2026, according to Eurostat data released on Monday.

The increase was broadly in line with the European Union average of 20.7%, with fuel and lubricant prices rising across all EU member states during the period.

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Cyprus Tracks The EU Average

Among EU countries, the largest annual increases were recorded in Bulgaria (33.9%), Luxembourg (32.2%), Lithuania (30.8%) and Romania (30.4%). At the other end of the scale, Hungary registered the smallest increase at 3.5%, while annual growth ranged from 12.7% in Poland to 29.2% in France across the remaining member states.

Eurostat noted that fuel and lubricant prices generally declined across the EU until February 2026 before moving higher in subsequent months.

Diesel And Petrol Follow Different Paths

Across the European Union, diesel prices increased by 29% in May 2026 compared with the same month a year earlier, while petrol prices rose by 16.2%. Monthly trends, however, were more mixed. Between April and May 2026, diesel prices across the EU fell by 5.8%, whereas petrol prices increased by 0.8%.

In Cyprus, diesel prices declined by 1.5% over the same period. Although lower than in April, the decrease was less pronounced than in Germany (-11.9%), Greece (-8.5%), Estonia (-8.4%) and Ireland (-8.1%).

Petrol prices moved in the opposite direction, rising by 2.1% between April and May. A similar pattern was observed across much of the EU, with 23 member states reporting monthly increases. Italy recorded the largest monthly rise in petrol prices at 6.9%, while decreases were reported in Germany (-5.6%), Ireland (-2.0%) and Sweden (-0.7%).

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