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Government Reconsiders Tax on High-Value Real Estate in Wake of Fiscal Reform

by THEFUTURE.TEAM

December 10, 2025

Evaluating Tax Measures for Properties Exceeding €3 Million

In a signal move following the recent tax reform, the Ministry of Finance is set to reassess the prospect of levying a tax on real estate assets valued over €3 million. Finance Minister Makis Keravnos announced during a session before the Finance Committee that this potential measure will be carefully studied once the ongoing fiscal reforms have been fully implemented.

Context and Historical Precedents

The discussion was prompted by a legislative proposal submitted by the political party AKEL, which advocated for a 0.1% levy on properties exceeding the specified threshold, a suggestion also backed by the Centre for Economic Research. Although this tax measure was part of earlier proposals, it was not adopted by the government, notably as a similar tax had been abolished a few years ago. Moving forward, authorities will reexamine the feasibility of administration by local governments.

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Corporate Tax Adjustments and Policy Timing

Alongside the real estate tax, questions arose pertaining to a graduated fee on companies—another strategy endorsed by the Centre for Economic Research during the design phase of the tax reform. However, the government determined that in the midst of sweeping tax changes affecting businesses, the imposition of an additional corporate fee might complicate rather than clarify taxation policy.

Challenges in Pension Funds and Cryptocurrency Regulation

Addressing another facet of fiscal policy, Minister Keravnos commented on the investment activities of pension funds. He noted that the European Commission has observed that exempting these funds from taxation amounts to a form of state aid, a matter that may prompt further explanations to the EC. Regarding tax adjustments for cryptocurrency transactions, the minister emphasized that elevating the rate from 8% to 15% is less about the tax rate itself and more about the challenges involved in accurately tracking these assets. He also highlighted that an upcoming regulatory framework from the European Commission is expected to be adopted by Cyprus.

This evolving fiscal landscape underscores the government’s careful balancing act between stimulating business confidence and ensuring equitable taxation practices in a rapidly changing economic environment.

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Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.