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Cyprus Business Now: taxes, private flight network, hotels, Aegean, Eurobank

Cyprus’ tax reform has revised rates and deductions and also substantially raised financial penalties, with the changes entering into force on January 1.

According to Philenews, the objective is to make fines more deterrent and strengthen tax compliance.

The administrative fine for breaching the decree on card payments has increased to €6,000 for businesses that do not accept credit cards.

Previously it stood at €4,000, while during the first implementation phase it was €2,000. The obligation, in place since autumn 2021 across retail, services, catering and leisure venues, forms part of efforts to combat tax evasion, protect public revenues and facilitate consumers.

Financial penalties have also risen for refusal or failure to submit declarations, statements or data, or for breaching duties under the certification and collection law.


A new strategic partnership is set to upgrade the private travel experience within Greece, as Zela Jet, owned by Cypriot entrepreneur Andreas Christodoulides, announces its collaboration with Fly Cycladic, one of Greece’s most dynamic airlines in the field of flexible private flights.

According to the companies, the partnership is intended to connect Greek destinations that until now were served only by ferries, helicopters or commercial flights with time-consuming connections.

Under the agreement, Zela Jet, a member of the Zela Aviation Group, will act as the exclusive General Sales Agent (GSA) of Fly Cycladic in Cyprus for private flights operating from Greek airports to selected destinations within Greece, while the service is designed for travellers seeking flexibility, comfort, privacy and time savings.

Cypriot travellers will be able to board a Fly Cycladic aircraft from any Greek airport, including island airports, and transfer to their final destination without delays or connections.


Eurobank took part in the Money Conference 2026 as a platinum sponsor this week, contributing to discussions on global economic developments and the evolving landscape of alternative investments.

Held under the central theme Market Outlook and Alternative Investment Solutions, the conference focused on major international trends shaping the economic environment and the strengthened role of alternative investment solutions in modern portfolio management.

A panel discussion moderated by Menelaos Poullis, CFAManager Wealth Management for Institutional Clients at Eurobank, examined prospects for the global and Cypriot economies as well as recent developments in alternative investments.

The panel featured distinguished speakers from J.P. Morgan Asset Management and Eurobank, who explored key dynamics influencing today’s investment climate.

During the discussion, Poullis highlighted critical issues affecting the current environment.


The Cyprus Chamber of Commerce and Industry (Keve) on Thursday released a statement outlining its position against the proposed imposition of additional taxation on banks, arguing that such a measure would not constitute a sound economic choice.

The chamber stated that “any form of taxation cannot under any circumstances serve as an instrument of social policy”.

It pointed out that “the banking sector has already paid significant tax burdens during the period 2017 to 2024″.

According to the chamber, banks contributed €285 million in corporate tax and €470 million in special levy on deposits over that period.

It added that the total contribution amounted to €755 million, “providing the state with substantial resources to support borrowers and vulnerable groups without the need to impose further taxation”.


President Nikos Christodoulides has referred back to parliament the law allowing hotels and tourist accommodation to operate for up to five years under a special permit, citing violations of the principles of separation of powers, legality and equality.

According to Stockwatch, which cited a letter dated February 9, the president asked the House of Representatives to reconsider the Regulation of the Establishment and Operation of Hotels and Tourist Accommodations (Amendment) Law of 2026.

The law was originally approved on January 22 with 25 votes in favour and 15 abstentions following a proposal by Disy MP Kyriacos Hadjiyiannis.

The referral, he clarifies, does not concern a simple extension of deadlines but the creation of a new operating regime based on a “special licence”.

The amendment sought to address long-standing licensing delays, allowing establishments unable to obtain full permits to continue operating while securing required certificates.


Chief Scientist Demetris Skourides participated in the EU-India Forum in New Delhi on February 6-7, in efforts to strengthen Cyprus’ positioning within the evolving EU-India Innovation and Technology Partnership.

Skourides was accompanied by Heraklitos Iosifides, Deputy Chief of Mission at the Cyprus High Commission in India, and Nicolas Kyriakides, President of the Cyprus Forum, during the official visit.

The closed, invitation-only Forum was hosted by India’s Minister of External Affairs S. Jaishankar and convened by the Ananta Centre in partnership with India’s Ministry of External Affairs.

The event followed the 16th India-EU Summit and the historic conclusion of the India-EU Free Trade Agreement, aiming to translate high-level political agreements into actionable outcomes.

Discussions were structured around Security and Defence with a focus on maritime security and Indo-Pacific cooperation, Technology including semiconductors, cybersecurity and AI governance, Connectivity with emphasis on the India-Middle East-Europe Economic Corridor, and Climate and Energy aligned with the clean energy transition.


The Cyprus Securities and Exchange Commission (CySEC) has issued a new circular requiring certain Cyprus Investment Firms (CIFs) to complete a new electronic cross-border reporting form covering their 2025 activities across the European Economic Area.

The circular forms part of an exercise initiated by the European Securities and Markets Authority (ESMA).

The exercise is addressed to all investment firms providing services in member states of the European Economic Area, including Norway, Iceland and Liechtenstein, other than their home Member State during 2025.

As in the previous year, the process will be conducted through an EU online platform in the format of an electronic questionnaire.


Limassol Greens is entering a new phase of expansion in 2026, following a milestone year that saw the delivery of homes and the full launch of its golf course, confirming its transition into a fully operational golf and premium lifestyle destination in Limassol.

The project described 2026 as a decisive new chapter, marking its evolution from an ambitious development into a fully integrated golf and premium lifestyle destination with a stronger role in Limassol and across Cyprus.

Following a landmark 2025 defined by residential handovers and the launch of its international-standard golf course, the development is now moving ahead with a clear emphasis on expansion, upgraded infrastructure and the enhancement of everyday life within the project.

The foundations for this momentum were laid in 2025, when in September the first 74 residences were handed over, comprising 22 villas and 52 apartments located in the Robin East and Robin West buildings.

These deliveries led to the creation of the first permanent residential community at Limassol Greens, signalling a shift from construction activity to lived experience characterised by daily routines, social interaction and a growing sense of place.

In October 2025, the 18-hole golf course became fully operational, representing a major milestone for the development.


The European Central Bank (ECB) has published its latest wage tracker data showing that negotiated wage growth in the euro area is set to moderate in 2026, signalling easing pay pressures across the bloc.

The headline ECB wage tracker, which covers active collective bargaining agreements and smooths one-off payments over time, indicates negotiated wage growth of 3.2 per cent in 2025, based on a coverage of 49.9 per cent of employees in participating countries, and 2.4 per cent in 2026, based on a coverage of 33.1 per cent.

Compared with the December 2025 data release, the 2026 figure has been revised up by 0.1 percentage points.

The ECB wage tracker with unsmoothed one-off payments shows negotiated wage growth of 3.0 per cent in 2025 and 2.7 per cent in 2026.


The Central Bank of Cyprus (CBC) has reported an increased degree of convergence between the average interest rates of Cyprus credit institutions and those of the eurozone for both deposits and loans.

The CBC stated that there is an increased degree of convergence between the average interest rates of credit institutions in Cyprus and the corresponding average of credit institutions in the eurozone, covering both deposits and lending activity.

According to interest rate data for deposits and loans for each credit institution in Cyprus published by the CBC with reference month December 2025, interest rates on new household time deposits up to one year stood at an average of 1.20 per cent across all banks in Cyprus, compared with a eurozone average of 1.77 per cent.

A similar pattern was observed in new time deposits up to one year from non-financial corporations, which in Cyprus reached an average of 1.27 per cent across all Monetary Financial Institutions, compared with 1.93 per cent in the eurozone.


Aegean Airlines will resume flights between Paphos and Athens, adding three weekly services from July 3, 2026, according to an announcement by the Paphos regional tourism board (Etap).

The decision was discussed during a meeting held in Paphos on February 11, 2026 between Etap’s president and executives and representatives of Aegean Cyprus.

According to the announcement, the airline, as part of its continuous presence in Cyprus, is investing in the expansion of its network and activity, adding the Paphos – Athens route.

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