Nicosia: The Government will engage with Parliament in a spirit of cooperation and mutual understanding, seeking the broadest possible consensus to ensure that the implementation of the tax reform begins on January 1, 2026, Government Spokesperson Konstantinos Letymbiotis said on Thursday. Speaking during a press briefing, Letymbiotis emphasized that ‘Cyprus is changing’ is not just a slogan but a daily act of responsibility, with the tax reform exemplifying this transformation.
According to Cyprus News Agency, the Government is proceeding with a comprehensive overhaul of the tax system to make it fairer, more efficient, and sustainable, addressing the needs of citizens and the economy both now and in the future. The reform consists of six bills aiming to reduce the tax burden, support the middle class, bolster family income and employment, assist young couples in acquiring their first home, and encourage households’ green and digital transitions.
Letymbiotis highlighted the positive indicators of the Cypriot economy, noting that it is experiencing one of its best periods in recent decades. He stressed that the tax reform carries a strong growth aspect, promoting innovation, research, entrepreneurship, and competitiveness. Measures are designed to encourage investment, reduce administrative costs for businesses, and establish a simple, stable, and transparent framework that enhances tax compliance and limits tax evasion.
“Tax reform is not a simple accounting exercise. It is a political choice that demonstrates that when there is stability, responsibility, and planning, progress translates into tangible benefits for society. This is a reform that reaches citizens, businesses, and households,” Letymbiotis stated.
He further noted that the unemployment rate in Cyprus fell in October 2025 to its lowest level in 24 years, with the number of registered unemployed persons at 7,099. Seasonally adjusted data showed an unemployment index of 9,476 persons, marking an annual decrease of 8.8% compared to October 2024.
These figures confirm the economy’s resilience and the effectiveness of government policies supporting employment. The decline in unemployment in sectors such as trade, construction, manufacturing, and financial activities is directly linked to recent overall growth. Letymbiotis added that the conditions are being created to fully utilize the country’s human resources, generating positive prospects for everyone, including young Cypriots abroad who wish to return and work in their homeland.