Nicosia: The tax reform currently underway in Cyprus has been described as ‘very interesting’ by Kira Peter-Hansen, the Chair of the FISC Subcommittee delegation in Cyprus and Vice-Chair of the FISC Subcommittee. This statement followed a meeting with the Parliamentary Committee on Finance in Nicosia. Hansen highlighted the steps Cyprus has taken to address tax avoidance and evasion, including the abolition of golden visa and citizenship schemes.
According to Cyprus News Agency, Christiana Erotokritou, Chair of the Parliamentary Committee on Finance and Democratic Party MP, stated that Cyprus is fully harmonized with European Union tax regulations. The Subcommittee was accompanied by EPP MEP Michalis Hadjipantela during the visit.
Hansen emphasized the Subcommittee’s intent to understand Cyprus’s tax reform efforts and its potential role in future EU Council leadership. She noted the reform’s aim to increase the tax rate to 15%, aligning with OECD and European policies, and expressed interest in its impact on affordable housing. Hansen acknowledged Cyprus’s efforts in tax compliance, while noting concerns about investment schemes but expressed confidence in Cyprus’s adherence to European rules.
Erotokritou reiterated that Cypriot legislation is aligned with EU directives, particularly in combating tax evasion and money laundering. She emphasized the importance of maintaining and enhancing competitiveness in the European economy while providing tax relief for lower income groups, the middle class, and small businesses. Erotokritou also advocated for investment in technology, innovation, and research, and addressed the high energy costs in Cyprus.
Hadjipantela expressed gratitude for the Subcommittee’s visit and the acceptance of his report on simplifying the EU tax system. He acknowledged the housing challenges faced by Cypriots and pledged to address these issues. The Subcommittee received proposals from various Cypriot organizations on reducing bureaucracy for small businesses, which they aim to implement in Europe.