Cyprus Implements EU-Mandated 15% Tax Rate On Large Multinationals

by THEFUTURE.TEAM

August 27, 2024

Cyprus is set to introduce a 15% minimum tax rate for large multinational corporations, in compliance with the EU directive aimed at harmonising tax policies across member states. The move, endorsed by Cyprus’ Finance Minister Makis Keravnos, is expected to generate over €200 million in additional revenue. This decision, while marking a significant shift from the current 12.5% rate, aligns Cyprus with the broader OECD-led initiative to establish a global minimum tax rate. Despite concerns, Keravnos reassured that the change is unlikely to drive multinationals out of the country, as the directive applies EU-wide.

This adjustment reflects a crucial step in Cyprus’ ongoing efforts to maintain competitiveness while adhering to international tax standards. With the proposal now before the Cabinet and soon to be discussed in Parliament, the nation is poised to balance its attractive tax regime with the demands of a globalised economy.

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The introduction of this tax rate signals Cyprus’ commitment to international cooperation on tax matters, aiming to prevent profit-shifting practices that have historically allowed large corporations to minimise tax liabilities. For Cyprus, a key hub for multinational firms, this move could redefine its positioning in the global business landscape, ensuring it remains a compliant yet competitive destination for international business.

While the increase may seem minor, the 15% rate represents a broader shift in global tax policy, driven by a collective effort to create a more level playing field for taxation. For Cyprus, traditionally seen as a tax-friendly jurisdiction, this could challenge its status, pushing it to leverage other competitive advantages beyond low tax rates, such as a robust legal framework, strategic location, and skilled workforce. The long-term impact on foreign direct investment will be a critical metric to watch as this policy unfolds.

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Cyprus Faces Deepening Labour Shortages In Health, Technology And Tourism

by THEFUTURE.TEAM

July 2, 2026

Cyprus is facing significant labour shortages across key sectors of its economy, according to the annual EURES report on labour shortages and surpluses for 2025, based on 2024 data. The findings point to persistent strain in the labour market and growing pressure on employers trying to fill critical roles.

Health, Technology And Tourism Lead The Shortage List

The most acute shortages are concentrated in health care, information technology and tourism — three sectors that are central to Cyprus’s economic model and service capacity.

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Within health care, the report highlights shortages among nurses, midwives, medical imaging technicians and doctors, with the lack of personnel described as particularly severe.

In technology, shortages are reported for systems analysts, software and applications developers, web and multimedia developers, and ICT sales professionals.

Tourism and hospitality are also under pressure, with vacancies affecting waiters, chefs, cooks, hotel reception staff and restaurant managers. The report also notes significant demand for bus drivers, underscoring broader transport constraints linked to the sector.

Medium And Lower-Intensity Gaps Across The Economy

The shortage is not limited to highly specialized professions. The report also identifies moderate shortages in occupations such as electricians, mechanical technicians, sales workers, cashiers, builders, welders, heavy vehicle drivers, and workers in agriculture, livestock and construction.

At a lower level of severity, shortages appear among engineers in various specializations, health assistants, carpenters, plumbers, electrical technicians and bakers.

Broader European Imbalances Remain Persistent

Across the European Union, EURES notes that labour shortages remain widespread, but are concentrated in a limited number of member states. That pattern, the report suggests, leaves room for stronger cross-border mobility as a policy tool.

In countries such as Bulgaria, Italy and the Netherlands, employers struggle to fill a broad range of positions. By contrast, Latvia, Austria and Finland more frequently report labour surpluses.

Notably, 98% of occupations experiencing shortages in at least one member state also show surpluses in another EU country, highlighting the scale of labour mismatches across the bloc.

What Is Driving The Imbalance

The report attributes these imbalances to several structural factors, including limited awareness of job opportunities abroad, difficulties in recognising professional qualifications, language barriers and wage differences.

Particular attention is given to health and care professions, where an ageing population is increasing demand for services. The same pressure is evident in green-transition occupations such as electricians and other skilled tradespeople.

Policy Responses And Workforce Priorities

Among the report’s key recommendations are simpler procedures for recognising qualifications, stronger vocational training, improved job quality and better use of untapped labour pools, including women, older workers and migrants.

For Cyprus, the message is clear: addressing labour shortages will require more than short-term hiring fixes. It will demand coordinated policy action, targeted skills development and a labour market capable of adapting to demographic and technological change.

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