Payment Cards In Cyprus: A Growing Preference For Debit Cards

by THEFUTURE.TEAM

August 5, 2024

Recent data reveals a significant trend in the payment habits of Cypriots, highlighting a preference for debit cards over credit cards. On average, each Cypriot owns two payment cards, reflecting a broader shift towards more financially conservative spending practices.

Key Findings

Card Ownership: The average Cypriot holds two payment cards.
Debit Card Preference: There is a noticeable trend towards favouring debit cards over credit cards. This preference is driven by the immediate deduction of funds from the user’s bank account, which helps in avoiding the accrual of debt associated with credit cards.

Implications

The increasing adoption of debit cards signifies a growing inclination towards financial prudence and risk aversion among Cypriots. This behavioural shift has important implications for the banking and financial services sector, potentially prompting banks to enhance the features and benefits associated with debit cards to meet customer demand.

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Financial Behaviour

The preference for debit cards suggests a conscientious approach to financial management. By relying more on debit cards, Cypriots are prioritising immediate payment capabilities and avoiding the risks associated with deferred payments and interest accrual on credit cards. This shift is indicative of a broader trend towards fiscal responsibility and cautious spending.

Impact on Financial Services

The trend towards debit card usage over credit cards could lead to changes in the financial services industry. Banks and financial institutions may need to adjust their strategies, offering more attractive features and incentives for debit card users. This could include enhanced security measures, rewards programs, and better customer service to cater to the growing demand.

The payment card landscape in Cyprus is evolving, with a clear move towards debit cards as the preferred method of payment. This shift reflects a broader trend of financial prudence and risk aversion, indicating that Cypriots are becoming more cautious with their spending habits. Financial institutions will need to adapt to these changing preferences, ensuring that their services align with the needs of a more financially conservative customer base.

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Cyprus And Sweden Update Double Tax Treaty To Align With OECD Standards

by THEFUTURE.TEAM

July 3, 2026

Cyprus and Sweden have signed a protocol revising their bilateral double taxation agreement, a move designed to bring the treaty into line with OECD tax standards and deepen cooperation on transparency and information exchange.

The protocol was signed on behalf of the Republic of Cyprus by Finance Minister Makis Keravnos, while Swedish Ambassador Martin Hagstrom signed for Sweden, according to a statement from the finance ministry.

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A Modernised Treaty Framework

The ministry said the protocol updates the original 1988 Convention for the Avoidance of Double Taxation with respect to taxes on income. The revised text incorporates the minimum standards of the OECD’s Base Erosion and Profit Shifting (BEPS) initiative, adds provisions relating to bilateral tax treaties and introduces mutually agreed language governing the exchange of tax information.

According to the ministry, Sweden encountered constitutional obstacles that complicated the implementation of the Multilateral Instrument (MLI), the OECD-led mechanism designed to quickly and automatically embed BEPS measures into existing tax treaties. As a result, Cyprus and Sweden opted to conclude a separate protocol to secure the relevant amendments.

Why The Agreement Matters

Once both countries complete their domestic ratification procedures, the protocol will enter into force. For Cyprus, the deal is part of a broader effort to expand and update its tax treaty network, a policy the government says supports inward investment and reinforces the country’s standing as an international business hub.

“The updating, maintenance and expansion of the existing network of double taxation avoidance agreements, which are of the highest economic and political importance, aims to further strengthen and attract foreign investment and promote Cyprus as an international business centre,” the finance ministry said.

The ministry added that such agreements also help to “advance tax transparency, fairness and compliance in line with international standards.”

Part Of A Wider Treaty Expansion Strategy

The Cyprus-Sweden protocol follows a series of recent treaty-signing efforts as Nicosia accelerates its international tax diplomacy. In June 2026, Cyprus signed a double taxation agreement with the Hong Kong Special Administrative Region of the People’s Republic of China, creating a framework for tax cooperation, tax information exchange and the prevention of tax evasion and avoidance. The ministry said at the time that the agreement would support investment and trade between the two jurisdictions.

“The agreement creates a modern and reliable framework for tax cooperation that is expected to facilitate business activity and strengthen investment flows as well as trade transactions,” the ministry said then.

Earlier in 2025, Cyprus also concluded similar agreements with Vietnam and Curacao, underscoring a deliberate strategy to broaden its treaty network, reduce tax uncertainty for cross-border investors and strengthen its position as an international centre for business and capital flows.

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