Sweeping changes to tax collection and business audits in Cyprus

A major overhaul of the Cyprus tax system is set to take effect from the 2026 tax year, fundamentally reshaping the assessment and collection procedures for citizens and businesses while mandating tax returns for almost all residents aged 25 to 71.

These new provisions will significantly expand the categories of individuals required to submit a tax declaration.

The thinking behind the legislation is that every person with a substantial economic presence (whether through salaried services...