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Cyprus Tax Debt Hits €4.64 Billion With €1 Billion In New Arrears

by THEFUTURE.TEAM

July 23, 2026

Tax Debt Swells To €4.64 Billion

Cyprus’ tax debt has risen to €4.64 billion from €3.93 billion a year earlier, highlighting the scale of the challenge facing the Tax Department as it steps up collection efforts following the tax reform that came into force on January 1.

Of the total, €3.32 billion is classified as immediately payable debt, meaning it is due and can be pursued by the state without delay. The remaining €1.31 billion is considered difficult to recover and is not treated as immediately collectable.

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Nearly €1 Billion In “Fresh” Arrears

Almost €979.4 million of the outstanding tax debt relates to liabilities less than one year old, accounting for 29.5% of immediately payable debt.

A further €992.6 million, or 29.9%, has been outstanding for between one and four years. The largest share, more than €1.32 billion, consists of debts that are over four years old.

Collections And Enforcement Underway

Before collection measures were applied, immediately payable debt stood at €3.32 billion, compared with €2.29 billion at the end of December 2024.

Of that amount, €901.5 million is already subject to enforcement action. This includes €325.9 million in cases before the courts and €575.4 million under administrative collection measures, including memos on immovable property and the seizure of funds from bank accounts.

The amount recovered through bank account seizures remains relatively small at €263,000. Following these measures, immediately payable debt still stands at €2.42 billion.

New Tools Strengthen The Tax Department

The tax reform has expanded the Tax Department’s enforcement powers in an effort to improve compliance and accelerate debt recovery.

Alongside memos and bank account seizures, authorities have begun sealing business premises for tax debts exceeding €20,000, as well as for failing to issue receipts or invoices. From 2027, the measure will also apply to taxpayers who fail to submit tax returns.

Criminal Cases And Payment Plans

The department is also pursuing criminal prosecutions in cases involving unpaid withheld taxes, including VAT, PAYE and the Special Defence Contribution, as well as the non-submission of tax returns.

These proceedings may result in penalties, settlement agreements or structured repayment plans. In some cases, taxpayers comply by filing overdue returns or agreeing to repay outstanding liabilities. Some debts have also been included in the framework for settling overdue tax liabilities, although certain repayment agreements have yet to be completed.

Debt Age Points To A Structural Problem

According to Tax Department data, the average age of immediately payable debt increased to 80.3 months, or 6.7 years, by the end of December 2025, up from 58.3 months a year earlier.

Officials caution that the figure is not fully representative because it includes substantial long-standing arrears that are now considered unlikely to be recovered. The figures illustrate the scale of Cyprus’ tax arrears challenge, with a significant share of outstanding debt dating back several years despite ongoing collection efforts and expanded enforcement powers.

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Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

by News Editor

August 17, 2026

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

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IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.