The Cyprus Bar Association has expressed strong concerns over the proposed tax reform put forward by the University of Cyprus’ Economics Research Centre (CypERC).

The association has argued that it fails to achieve meaningful modernisation and lacks key mechanisms to ensure tax justice.

In addition, it called for an additional tax bracket of 40 per cent for annual incomes exceeding €120,000.

According to the association, the proposed reforms introduce outdated practices without providing mechanisms for resolving tax disputes, potentially undermining tax fairness.

It argued that the suggested framework does not constitute a comprehensive tax transformation plan but rather a set of fragmented improvements to certain aspects of the existing system.

“The CypERC proposals do not represent an action plan for a comprehensive tax transformation that could support Cyprus’ development strategy in the new era,” the association said in its statement.

The migration department on Wednesday announced the start of applications for residence permits under the Cyprus Digital Nomad Visa scheme.

According to the announcement, the scheme “aims to attract nationals from non-European Union (EU) and non-European Economic Area (EEA) countries, allowing them to reside in Cyprus”.

This is conditional on the premise that their work “is carried out remotely, using technology, for companies or clients established abroad“.

“The purpose of the scheme is to strengthen Cyprus as a hub for electronic services,” the announcement stated.

“Combined with the country’s other advantages, attracting digital nomads will contribute to the development of the business ecosystem and, consequently, to the economic growth of the country,” it added.

Credit rating agency Morningstar DBRS on Wednesday revised its economic growth and unemployment projections for Cyprus, reflecting a more optimistic outlook for the country’s economy.

In its report, the agency updated its macroeconomic forecasts for several sovereign nations, including Cyprus.

It increased its 2025 GDP growth estimate for Cyprus by 0.3 percentage points compared to its December 2024 projection, now expecting economic expansion to reach 3.1 per cent.

In addition, the agency maintained its forecast for 2026 GDP growth at 2.9 per cent.

In terms of unemployment, the agency now expects the jobless rate in Cyprus to stand at 4.9 per cent in 2025, revising its estimate downward by 0.2 percentage points from the previous December forecast.

At the same time, its 2026 unemployment projection improved by 0.1 percentage points, with the rate expected to remain at 4.9 per cent.

Cypriot businesses have significantly progressed with the integration of digital technologies into how they operate, according to the Cyprus Statistical Service (Cystat).

This was evident in Cystat’s latest report detailing the results of its 2024 survey on the use of information and communication technologies (ICT) and e-commerce in businesses.

The findings reveal that a substantial 84.1 per cent of businesses with ten or more employees provided their staff with mobile devices capable of connecting to the internet via mobile networks.

Furthermore, 88.1 per cent of businesses allowed remote access to corporate email, while 71.7 per cent enabled access to company documents, and 66.3 per cent permitted the use of business applications such as customer relationship management (CRM) and accounting software.

In addition, the survey found that 23.5 per cent of businesses received orders through computer networks.

Consulting and advisory firm PwC Cyprus on Wednesday released a statement detailing the various initiatives implemented by its foundation to “strengthen financial literacy and foster an entrepreneurial mindset among young people”.

Specifically, to mark Global Money Week 2025, which took place from March 17 to 23, the non-profit PwC Foundation coordinated the ‘Financial Literacy’ educational programme for the third consecutive year.

The initiative was supported by Junior Achievement (JA) Cyprus and held under the auspices of the Ministry of Education, Sports, and Youth.

This year’s Global Money Week theme was ‘Think Before You Follow, Wise Money Tomorrow’.

“Eleven PwC Cyprus mentors voluntarily participated in the 1.5-hour programme, equipping secondary school students with essential financial knowledge and skills,” the announcement stated.

This year’s tourist bookings are expected to remain at approximately the same levels as in 2024, the head of the Paphos Hoteliers Association, Evripides Loizides, said on Wednesday.

He added that seasonal tourism was gradually becoming a thing of the past.

Pre-bookings from November 2024 to January 2025 showed a 7-10 per cent increase for the summer. However, from February onwards, overall pre-bookings across the island slowed significantly, though Paphos recorded a marginal increase, Loizides said.

The island’s tourism sector depends largely on visitors from the United Kingdom, Israel, Poland, Greece, Germany and France.

“The economic crisis has started to have a serious impact,” he told the Cyprus News Agency (CNA).

For the first time a Cypriot has been elected to the position of Vice Chair of the International Maritime Organisation, the deputy ministry of shipping announced on Wednesday.

In a press release the ministry said the election of its Legal Affairs Director Lydia Markari-Kyriacou to the post had been unanimous by IMO member states during the legal committee’s 112th session, currently taking place in London.

Markari-Kyriacou’s nomination was a recognition of her contribution to the IMO’s work and “a significant commitment towards the future in advancing pressing legal maritime issues and the shaping international maritime law”, the ministry said.

Markari-Kyriacou is a qualified lawyer who had served the Cyprus maritime administration as a legal officer for over twenty years with extensive experience in drafting and implementing maritime legislation including international conventions, the press release said.

The Ministry of Energy, Commerce and Industry, in collaboration with the Cyprus Trade Centre in Berlin, participated in the PROWEIN 2025 international wine and spirits exhibition for the fourth consecutive year.

The event took place in Düsseldorf, Germany, from March 16-18, 2025, with Cyprus represented by nine wineries under a national pavilion.

According to an official statement released on Wednesday, the Cypriot wineries highlighted the uniqueness of the island’s indigenous grape varieties while showcasing a diverse selection of wines.

The statement mentioned that “a new feature at this year’s pavilion was a dedicated tasting area for commandaria, Cyprus’ renowned dessert wine”.

It added that the tasting area “attracted significant attention from visitors eager to learn about its characteristics and historical significance directly from the winemakers”.