Nicosia: The Government is working methodically and in a targeted way to maintain stability and further strengthen the resilience of the economy, President Nikos Christodoulides stated in his address to the 64th Annual General Meeting of the Cyprus Institute of Certified Public Accountants (ICPAC). He emphasized that Cyprus must and can remain an island of credibility amid an increasingly complex international environment.
According to Cyprus News Agency, the President’s address was delivered by Deputy Minister to the President, Irene Piki. In regard to tax reform, the President noted that they are in the final phase of preparing the bills, with the intent to present them to Parliament soon. The new framework is aimed to be implemented from January 1, 2026.
The President highlighted ICPAC as an ‘important partner of the State in one of the most critical areas of public life: the economy’ and ‘partners’ in every national effort for progress and stability. He acknowledged the presence of the President of the International Federation of Accountants, Jean Bouquot, at the event, recognizing ICPAC’s high professional level and the international appreciation of the Cypriot accounting sector.
The Government acknowledges and values ICPAC’s role as an institutional interlocutor that actively contributes to public debate and policy formulation. Its involvement in reforms has been significant and constructive. The current state of affairs, described as ‘demanding and full of uncertainties’, sees the Eastern Mediterranean regaining strategic importance for security and regional cooperation. Cyprus faces a dual challenge to remain a stable partner in the region and ensure economic resilience and social cohesion.
President Christodoulides noted that despite the volatile international environment, the Cypriot economy continues to perform well, with a 3.4% growth rate in 2024, a return to investment grade by rating agencies, low unemployment, and declining public debt. To shield the economy, the Government is working on significant reforms, including a comprehensive review of the tax system, aiming for a fair, efficient, and competitive system.
The tax reform is part of broader institutional reforms meant to enhance economic resilience, credibility, transparency, and accountability. The Government is proceeding with interventions to strengthen supervision and compliance, such as establishing the Single Supervisory Authority and the National Sanctions Unit.
These initiatives aim to protect Cyprus as a state governed by the rule of law and to bolster its reputation as a serious business destination. Additionally, the Government has launched its first international campaign to position Cyprus as a competitive business hub. President Christodoulides also highlighted the ‘Minds in Cyprus’ initiative focused on attracting and retaining talent.
He concluded by stating that the Government is moving forward with a coherent plan to address current challenges while investing in future possibilities. The collaboration with institutions like ICPAC is crucial in this endeavor, and he expressed gratitude for their contribution.