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Cyprus Tax Authorities To Seal Business Premises In New Enforcement Drive

Stricter Enforcement Under New Tax Laws

The Cyprus Tax Department is preparing to begin sealing business premises with unpaid tax liabilities as part of enforcement measures introduced under the country’s tax reform framework, which came into effect on January 1, 2026. The measures are expected to be implemented during the summer and form part of broader efforts to strengthen tax compliance and recover overdue public revenue.

Empowering Authorities With Enhanced Tools

Under the legislation, tax authorities are granted expanded enforcement powers, including the suspension of business operations and the temporary sealing of premises. The measures apply to businesses with outstanding liabilities exceeding €20,000, including surcharges and penalties. Covered obligations include income tax, special defence contribution, capital gains tax, VAT, withheld taxes and other related contributions.

Targeted Compliance Campaign

The new framework forms part of a wider compliance campaign targeting individuals and businesses that have failed to settle tax obligations. Authorities may proceed with enforcement in cases involving self-assessments or final tax assessments issued by the Tax Commissioner. Businesses or individuals currently challenging liabilities through administrative or judicial procedures are excluded from the enforcement process.

Structured Enforcement And Repayment Options

Tax authorities are already categorising debtors according to the size of outstanding liabilities in order to prioritise enforcement actions. The process includes three warning stages: an initial notice, a second notice after ten days and a final warning providing five additional days before premises can be sealed. Initial closure orders may remain in place for up to ten days, while continued non-compliance could lead to extensions of up to 20 additional days.

Incentivizing Settlement Through Repayment Agreements

Businesses entering structured repayment arrangements or instalment plans will be able to avoid closure measures. The approach is intended to encourage settlement of unpaid liabilities while allowing businesses additional time to regularise outstanding obligations.

A Strategic Shift In Tax Enforcement

The initiatives signal a significant shift in the country’s tax enforcement strategy. By focusing on active businesses and applying pressure on large-scale offenders, Cyprus is adopting a methodical approach to ensure compliance, reduce fiscal gaps, and ultimately, secure tax revenues.

Cyprus Promotes Ship Registry In Asia As Fleet Grows To 25-Year High

Cyprus is stepping up efforts to attract international shipowners, with Shipping Deputy Minister Marina Hadjimanolis holding high-level meetings in China and Japan as the country’s ship register reaches its strongest level in 25 years.

Running from October 14 to 29, the Asian mission focuses on expanding commercial ties, promoting the advantages of the Cyprus flag and strengthening cooperation with shipowners, shipbuilders and maritime authorities.

China Meetings Target Shipowners And Industry Leaders

In Shanghai, Hadjimanolis met Wang Qian, vice-director of the Shanghai Pudong New Area Commission of Commerce and Shipping Service Office, ahead of the North Bund International Shipping Forum on October 20–21. Organisers expect around 4,000 participants from more than 50 countries and regions, with discussions covering international shipping, maritime safety, financing, insurance, digitalisation and the transition to cleaner fuels.

The minister also met representatives of Dalian Trawind Shipping and Fortuna Shipbrokers Inc. to present the Cyprus registry’s advantages and explore registration opportunities for vessel owners. On October 20, she is scheduled to speak at the 10th Annual Capital Link International Shipping Forum in Pudong, joining a ministerial roundtable on international maritime leadership.

A visit to Zhoushan is also planned for the naming ceremony of Kypros Island, a new vessel for the Cyprus register owned by Safe Bulkers. Launched in June at the Tsuneishi shipyard on Xiushan Island, the 81,200-deadweight-tonne methanol dual-fuel bulk carrier is scheduled for delivery at the end of October. According to the Zhejiang Maritime Safety Administration, sea trials were due to take place between October 11 and 16.

Japan Engagements Strengthen Maritime Ties

Before travelling to China, Hadjimanolis met Japan’s Parliamentary Vice-Minister for Land, Infrastructure, Transport and Tourism, Kenta Aoshima, in Tokyo on October 16. Her programme also included meetings with senior representatives of Shoei Kisen Kaisha, Nihon Shipyard, NYK Line, ITOCHU Corporation and SSY Projects, focusing on cooperation with Japanese shipowners, shipbuilders and shipping operators.

At the 5th Annual Capital Link Japan Maritime Forum, held at the Tokyo American Club, Hadjimanolis discussed maritime leadership, competitiveness, policy and international cooperation with Capital Link founder and president Nicolas Bornozis. Other sessions examined Japan’s shipbuilding strategy, new-vessel financing and the development of ammonia-powered ships.

The Tokyo programme followed a Cyprus Ship Registry reception on October 15 for representatives of Japan’s maritime and business communities. Hadjimanolis outlined the country’s shipping services and regulatory framework, while Polys Hajioannou, chief executive of Safe Bulkers and president of the Cyprus Union of Shipowners, delivered the opening remarks.

Registry Reaches Highest Level In 25 Years

At the reception, Hadjimanolis said the Cyprus Ship Registry had grown by 27% since September 2023, reaching its highest level in a quarter of a century. She attributed the expansion to efforts to improve competitiveness, simplify administrative procedures and provide more responsive services to international shipowners.

Cyprus’s inclusion on the White Lists of the Paris and Tokyo Memoranda of Understanding was another point highlighted by the minister. These lists reflect the safety and inspection performance of ships flying a national flag.

Existing commercial links with Japan include Safe Bulkers’ announcement in May of four Japanese-built dry bulk vessels scheduled for delivery in 2029.

South Korea Next On The Maritime Agenda

Hadjimanolis’ mission will continue in South Korea, where she is expected to attend the 2026 World Maritime Day Parallel Event and Korea Maritime Week alongside International Maritime Organization Secretary-General Arsenio Dominguez and government representatives from several countries.

Her programme will also include discussions on implementing international maritime conventions and bilateral talks aimed at strengthening Cyprus’s shipping ties with South Korea.

The Asian outreach comes as maritime centres compete for shipowners amid geopolitical uncertainty, fleet renewal and pressure to reduce shipping emissions. For Cyprus, the strategy combines promotion of its registry with closer relationships across Asia’s shipbuilding and shipping sectors.

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