Alpha News

Tax Reform: What it Means in Practice

Published January 22, 2026, 07:29

The new tax reform has come into effect in Cyprus, bringing immediate benefits to citizens, families and businesses through reduced tax burden and increased disposable income. Key elements of the reform include raising the tax-free allowance to €22,000 and restructuring tax rates, aiming for a fairer and more modern tax system. Specific examples are provided to demonstrate the benefits for different categories of households, such as single-parent families, large families and individuals with mortgages or electric vehicles. The government provides a digital tool to help citizens see their personal benefit.