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Tax Reform Sparks Fiscal Relief And Economic Growth

by THEFUTURE.TEAM

February 13, 2026

Tax Reform Delivers Immediate Benefits

The recently implemented Tax Reform is already making a significant impact on the everyday lives of citizens, families, and businesses, as the reduction in the tax burden and the increase in net disposable income become evident. Approximately 200,000 taxpayers benefited from higher net earnings with the January wage disbursement, and projections indicate that by 2026, 30,000 individuals will be fully exempt from income tax. These figures underscore the reform’s success in returning more income to the public, supporting the middle class, and reinforcing social cohesion through a modern and equitable tax framework.

Enhanced Support For Families And Employees

According to Mr. Sotiris Markidis, a senior official in the Tax Department, a family with four children and an annual income of €130,000 can expect an increase in available income of roughly €7,000 per year. Similarly, a single-parent household with three children earning €70,000 annually is projected to gain more than €4,000. A pivotal aspect of the reform is the rise of the tax-free income threshold to €22,000, which means an even larger share of employees will be fully exempt from income tax. This feature sets the policy apart within the European Union. Cyprus, which already had one of the highest tax-free thresholds in Europe, has now raised it even further.

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A Boost For Small And Family Businesses

The reform also offers sizeable advantages for the real economy. Measures such as the elimination of the deemed dividend distribution and a significant reduction in the Extraordinary Defense Contribution are anticipated to benefit over 30,000 small family businesses by enhancing liquidity and competitiveness. In addition, new tax incentives focused on innovation, green investments, and modern business practices are molding a stable and attractive fiscal environment that promotes sustainable growth.

A Foundation For A Fairer And More Competitive Economy

Implemented after two decades of governance, the Tax Reform establishes solid foundations for a more just society and a competitive economy, with policies that yield immediate and substantial benefits for everyday citizens.

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EU Services Production Grows As Information And Communication Lead

by THEFUTURE.TEAM

November 10, 2026

Services production continued to expand across the European Union in August 2026, with information and communication recording the strongest annual growth. However, performance varied significantly between industries and member states, while Cyprus reported a mixed picture, with business services expanding and hospitality-related activities declining.

Information And Communication Leads Sector Growth

Compared with August 2025, services production increased by 5.9% in the euro area and 5.8% across the EU in information and communication. Transportation and storage also recorded growth, rising by 2.1% and 1.9%, respectively.

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Real estate activities increased by 1.6% in the euro area and 1.1% in the EU. Professional, scientific and technical activities grew by 1% in both areas, while administrative and support services advanced by 1.1% and 1.3%.

Accommodation and food services was the only major sector to record an annual decline, falling by 0.1% in both the euro area and the EU.

The monthly figures were more mixed. Information and communication remained the strongest performer, increasing by 1.2% in the euro area and 1% across the EU. Real estate activities rose by 0.4% and 0.9%, respectively, while transportation and storage edged up 0.1% in the euro area but declined by 0.2% in the EU.

Administrative and support services recorded modest gains of 0.2% in the euro area and 0.1% in the EU. Accommodation and food services fell by 0.3% and 0.4%, while professional, scientific and technical activities declined by 0.8% and 0.9%, respectively.

Slovakia And Greece Record Strongest Annual Growth

Romania recorded the largest monthly increase in services production, at 5.2%, followed by Malta at 1.8% and Portugal at 1.7%. Luxembourg experienced the steepest decline, with output falling by 5.1%, followed by Bulgaria at 2.3% and Denmark at 1.9%.

On an annual basis, Slovakia led with growth of 10%, followed by Greece at 9.3% and Malta at 7.5%. Hungary recorded the weakest performance, with services production declining by 5.6%. Denmark fell by 5.3%, while Italy recorded a smaller decrease of 0.3%.

Cyprus Sees Growth In Business Services But Weakness In Hospitality

Cyprus’ latest figures show a similar divide between expanding business services and weaker hospitality-related activities. According to the Statistical Service of Cyprus (Cystat), professional, scientific and technical activities recorded the strongest annual growth among the covered sectors in the second quarter of 2026, increasing by 3.4%.

Transportation and storage and information and communication both grew by 2.1%, while real estate activities rose by 1.6%. In contrast, accommodation and food services declined by 3.1% year on year, and administrative and support services fell by 2.2%.

First-half results were more favourable for several sectors. Between January and June, professional, scientific and technical activities grew by 3.5%, transportation and storage by 2.8%, real estate by 2.1% and information and communication by 1.3%.

Nevertheless, administrative and support services contracted by 1% over the six-month period, while accommodation and food services declined by 0.7%.

How Cyprus’ Figures Differ From Eurostat’s Data

The Eurostat and Cystat figures measure different aspects of economic activity and are not directly comparable. Eurostat’s services production index tracks changes in the volume of output, whereas Cystat’s Turnover Value Index for Services and Transport measures the value of sales at current prices.

The reporting periods also differ: Eurostat’s figures cover August, while the cited Cypriot data relate to the second quarter and first half of 2026.

Cystat transmits services production data to Eurostat but does not yet publish a separate national production index. Turnover figures therefore remain the main publicly available national indicator for the sector.

Taken together, the data point to continued growth in several of Cyprus’ business-oriented services, alongside persistent pressure on accommodation, food and administrative support activities.