The Cyprus Institute of Certified Public Accountants (Selk) welcomed the passage of Cyprus’ long-awaited tax reform by the House of Representatives, saying the vote marks a major institutional shift after more than two decades without a comprehensive overhaul of the tax system.

The reform, which will come into force on January 1, 2026, was described by Selk as “a significant institutional milestone for the tax system of the Republic of Cyprus, following a period of more than 23 years without an overall and structural review”.

The institute said the new framework “reflects the need to modernise the tax system so that it can respond more effectively to contemporary economic conditions, international developments and the increased demands for transparency, simplicity and tax justice”.

“The adoption of the tax reform constitutes a substantive institutional development that creates the conditions for a more modern, coherent and functional tax system,” Selk president Odysseas Christodoulou said in a statement.

Foreign direct investment in Cyprus totalled €365.07 billion in 2024, with Russia remaining the largest single source despite a sharp decline, according to data on inward investment positions published on Wednesday by the Central Bank of Cyprus (CBC).

The central bank said €83.46 billion of the total stock of inward foreign direct investment originated from the Russian Federation, accounting for 23 per cent of the overall amount.

Investment originating from the 27 EU member states represented 20 per cent of the total, with a combined value of €74.36 billion.

Within the EU, Luxembourg held the largest share, amounting to €32.1 billion, which corresponds to 9 per cent of total inward foreign direct investment and 43 per cent of EU-sourced investment.

The Netherlands followed with €6.9 billion, representing 2 per cent of the total and 9 per cent of inward investment from the EU.

The Cyprus Bankers Employeers Association and the Cyprus Union of Bank Employees (Etyk) signed the new collective labour agreement on Wednesday, covering the years 2023 to 2027.

The agreement was signed at the headquarters of Bank of Cyprus (BoC), in the presence of the Labour Minister, Marinos Moussioutas, by the president of the association, Panicos Nicolaou, and the honorary president of the union, Loizos Hadjicostis.

In a statement, the association said the agreement “confirms the spirit of good cooperation between the two parties” and sends a clear message of labour peace, stability and a positive outlook for the financial sector and the Cypriot economy more broadly.

In the same context, Nicolaou said banks and employees were now moving forward with a shared vision for the future of the country, particularly ahead of the first half of 2026, when Cyprus will assume the presidency of the Council of the European Union.

Approximately 40 actions have been completed or are in progress within the framework of the National Strategy for Gender Equality 2024-2026, which includes approximately 60 actions, Gender Equality Commissioner Josie Christodoulou said on Tuesday.

At the same time, she pointed out “that for the first time we are promoting equality issues in all ministries and deputy ministries”.

Expressing satisfaction with the progress of the strategy’s implementation, Christodoulou said equality officers have been appointed in all ministries and deputy ministries, with whom there is daily coordination and cooperation. 

She said the strategy’s “holistic and horizontal approach” is an effort to break down stereotypes through education, the launch of information campaigns and cooperation with career guidance counsellors, so that children are advised on their professional orientation based on skills and not on stereotypes.

The government’s decision to raise the national minimum wage to €1,088 per month, has drawn strong and conflicting reactions from employers’ organisations and trade unions.

The increase was approved by the council of ministers on Tuesday, following a proposal by the ministry of labour and social insurance.

Labour Minister Marinos Mousiouttas said the decision was based on macroeconomic and social data, including inflation, economic growth and employment trends.

He said the adjustment aimed to strengthen the purchasing power of low-paid workers without harming competitiveness.

Under the decree, the minimum wage before completing six months of employment will rise from €900 to €979, and after from €1000 to €1088.

The changes are expected to benefit around 50,000 workers and will apply from January.

TechIsland welcomed the adoption of the tax reform by the House of Representatives, saying it concludes an extensive institutional process aimed at modernising Cyprus’ tax framework.

In a statement, the association said it acknowledged “the importance of the dialogue that preceded the legislative process and the opportunity provided to social and productive stakeholders to submit their positions and recommendations”.

Representing the fastest-growing sector of the Cypriot economy, with a contribution of around €8 billion to gross domestic product, TechIsland said it had actively participated in the process, submitting well-documented views with the objective of maintaining and strengthening the country’s international competitiveness.

With the legislative process now complete, the association said the focus should shift to implementation, in particular the clarity and practical functionality of the new provisions, as well as their real impact on business operations and, by extension, on the economy.

Invest Cyprus described parliament’s approval of the tax reform as a very positive development, saying it closes an important, if not the most important, chapter for business and foreign investment in Cyprus.

With the reform passed this week, the organisation said “Cyprus’ attractive investment environment is being maintained and further strengthened”, supported by a competitive tax framework that reinforces entrepreneurship while enhancing predictability for investors.

The reform, as mentioned in its statement, introduces several changes affecting legal entities.

These include the complete abolition of the deemed distribution of dividends, alongside a reduction in the withholding tax on the actual distribution of dividends to 5 per cent from 17 per cent.

At the same time, stamp duty is abolished, exemptions for capital gains tax purposes are increased, stock options receive more favourable treatment, and corporate tax rises to 15 per cent from 12.5 per cent.

The Cyprus Securities and Exchange Commission (CySEC) has issued a final reminder to Crypto-Asset Service Providers (CASPs) operating in the Republic that they must apply for authorisation under the Markets in Crypto-Assets Regulation (MiCA) by February 27, 2026, to ensure the legal continuation of their business.

Following an announcement made on October 17, 2024, and the subsequent Circular No. 674, the regulator clarified that firms currently registered under the existing national framework are permitted to continue their activities until their application is either approved or rejected.

The provision of these services is strictly limited to the duration of the transitional period, which is set to expire on July 1, 2026, or until a decision on the application is reached, whichever occurs first.

“CASPs that do not apply for authorisation by the above deadline are required to submit a wind-down plan, as the provision of crypto-asset services will no longer be permitted after the end of the transitional period,” the regulator stated.

Volunteering begins with “wanting to be there, wanting to offer and wanting to dedicate time”, according to Konstantina Logotheti, head of marketing and communications at PwC Cyprus and director of the PwC Foundation.

In a column released this week, she spoke about her regular visits to elementary school classrooms for the Junior Achievement programme ‘Our Community’.

Logotheti said she often starts by asking children what volunteering means.

She explained that “the word is usually unfamiliar to them”, prompting her to describe volunteering as something that comes from choice, from the phrase “I want”.

She said that “acts of giving, whether small or large, are done because people choose to do them, adding that the feeling of offering creates a sense of contributing to something larger than oneself”.