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Cyprus Tax Reform Ushers In A New Era Of Fiscal Sustainability And Economic Competitiveness

The government has introduced an expansive tax reform package to Members of Parliament, embodied in six comprehensive bills. Finance Minister Makis Keravnos underscored the package’s significance, describing it as the most far-reaching reform to date—one designed to secure long-term benefits for future generations.

Redressing Economic Imbalances And Fulfilling EU Obligations

The reform is anchored in a commitment to reduce inequality, correct entrenched fiscal distortions, and maintain compliance with European Union standards. Central to the initiative is the goal of redistributing the tax burden more equitably while simultaneously enhancing economic competitiveness and supporting household stability.

Legislative Process And Timing Considerations

Originally slated for final submission by the end of August, the tax reform bills received cabinet approval on October 29 and are now before the House Finance Committee. Despite timing challenges posed by forthcoming examinations of state and ministry budgets, the ministry remains on standby to supply additional clarifications to MPs, aiming for an objective evaluation that transcends partisan politics.

Targeted Benefits For Families And Businesses

The comprehensive reform package includes measures designed to ease household financial pressures—particularly for families with children—addressing key concerns such as housing, energy upgrades, and subsidized insurance for natural disasters and disabilities. Concurrently, business incentives have been bolstered through corporate tax improvements, the abolition of certain contributions, and measures intended to foster innovation and bolster capital investment.

Fiscal Projections And Long-Term Implications

While initial projections anticipated a surplus of €112 million from the reforms, revised estimates now suggest a more modest surplus of €18 million. Additionally, provisions such as the recalibration of non-domicile status and adjustments to non-taxable income thresholds are expected to enhance Cyprus’ overall competitiveness. The reform package is also linked to commitments under the national recovery and resilience plan, with an anticipated injection of €190 million in the first half of 2026.

The tax overhaul represents a decisive step toward creating a more balanced and robust economic environment—a move that promises to bolster fiscal sustainability while enriching the lives of Cyprus’ citizens.

doValue Cyprus Strengthens Market Leadership With New Astrobank Portfolio

Expanding Market Influence

Loan and real estate management firm doValue Cyprus has significantly reinforced its domestic presence in non-performing loan servicing by acquiring a new portfolio from Astrobank Public Company Limited. This development follows Astrobank’s recent transition, marked by the transfer of key operations to Alpha Bank Cyprus Limited and the subsequent surrender of its banking licence.

Strategic Acquisition And Swift Execution

Finalized on November 3, 2025, the agreement underscores a decisive strategic shift as doValue Cyprus assumes management of Astrobank’s remaining portfolio. The immediate commencement of portfolio management is a testament to the firm’s commitment to delivering specialized, resilient solutions within the non-performing loan market.

Expertise Driving Market Growth

Chief Executive Officer Varnavas Kourounas emphasized that the latest portfolio acquisition not only expands the firm’s operational footprint but also validates its credibility and deep expertise in the competitive Cypriot financial sector. The strategic move is aligned with the broader growth ambitions of the doValue Group.

Broader Market Implications

Operating as part of the international doValue Group—the largest independent loan and real estate management organization in Southern Europe—doValue Cyprus is well-positioned to leverage its newly expanded portfolio. With approximately €136 billion in assets under management, the group maintains a dominant presence across Italy, Greece, Spain, Portugal, and Cyprus. Moreover, its subsidiary, Altamira Real Estate, runs Cyprus’ largest real estate platform, managing extensive property portfolios alongside the island’s most comprehensive sales network.

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