Cyprus's Council of Ministers has formally approved the extension of the zero Value Added Tax (VAT) rate on a selection of essential household products, providing relief for vulnerable citizens for an additional year. The Extension Decision The measure, initially set to expire in December 2025, will now remain in force until December 2026. Finance Minister Makis Keravnos made the announcement...
Apartment prices across Cyprus surged to a new all-time high in the second quarter of 2025, breaking a 17-year-old record set in 2008. According to new data from the Central Bank, the apartment price index has been driven by a combination of limited housing supply, strong foreign demand, and rising construction costs. A New Peak for Apartments The Central Bank's apartment price index reached 118.2 points...
Cyprus's state budget implementation rates for the first nine months of 2025 were lower than the previous year, but the Treasury of the Republic reported this was primarily due to significant reductions in loan transactions rather than a slowdown in the core economy. In fact, core tax revenues showed healthy growth during the period. The Headline Figures By the end of September 2025, total state revenues...
International investment in Cyprus's real estate market remains exceptionally strong, with foreign nationals acquiring 1,669 properties in the 12-month period from September 2024 to September 2025. Data submitted to Parliament by Interior Minister Constantinos Ioannou confirms the island's enduring appeal to a diverse range of overseas buyers. Residential Homes Lead the Way Residential properties were...
The Cypriot government's ambitious new bill to regulate the management of 30,000 jointly-owned buildings is facing collapse after the five District Local Government Organisations (DLGOs)—the very bodies tasked with implementing it—have strongly opposed the plan. In a memorandum to Parliament, the DLGOs warned that the proposed law would saddle them with complex, resource-intensive duties they are...
Cyprus tourism has achieved a historic record in 2025, with the first nine months of the year marking the best performance in the country's history. According to Deputy Minister of Tourism Kostas Koumis, tourist arrivals from January to September surged 10.3% compared to 2024, and the sector's contribution to the economy has risen to 14% of GDP, up from 13.3% last year. Leading Europe in Revenue and...
The Cypriot Parliament is set to vote today on a long-delayed bill to create a screening mechanism for Foreign Direct Investment (FDI), a move that brings Cyprus into alignment with EU regulations. The vote is accompanied by last-minute amendments from the opposition party AKEL aimed specifically at curbing the impact of foreign investment on the island's property market. The Push for Real Estate...
The Republic of Cyprus recorded a robust fiscal surplus of €1.439 billion in 2024, equivalent to 4.1% of its GDP, according to audited data verified by the European Commission. The Cyprus Statistical Service also reported that this strong fiscal performance helped reduce public debt to €21.82 billion, or 62.8% of GDP. The Fiscal Mechanics: How the Surplus Was Achieved The impressive surplus was the...
Cyprus is facing mounting pressure from economists and international bodies, including the IMF, to fundamentally reform its property tax system. Critics argue the current framework, characterized by low tax collection and generous developer incentives, is fueling a housing affordability crisis, worsening inequality, and depriving the state of stable revenue. The Core Problem: Low Revenue and High...
The Cypriot economy showed robust growth in 2024, with the Gross Domestic Product (GDP) expanding by 3.9% in real terms, according to a revised estimate published on Monday by the Cyprus Statistical Service (CYSTAT). Key Economic Figures This positive real-term growth was accompanied by a 7.2% increase in GDP at current prices, reflecting the economy's strong performance over the year. The total value...
