Cyprus implements tax reform with increased thresholds and abolished stamp duties

The Cyprus tax reform has officially come into effect, introducing structural changes to the national fiscal framework scheduled for completion by 2026. Key measures include raising the tax-free income threshold to €22,000 and the complete abolition of stamp duties on all contracts. Approximately 200,000 taxpayers have already seen increases in their net income following January salary payments. The reform also provides a tax deduction of up to €2,000 per spouse for interest paid on mortgages for primary residences, subject to income criteria. According to Tax Commissioner Sotiris Markidis, 30,000 individuals are expected to be fully exempt from income tax by 2026. Additionally, banks will cease acting as tax collectors in specific instances, and rental payments will transition to banking channels exclusively.