Cyprus’ tax reform, which took effect on January 1, 2026, is expected to deliver direct financial benefits to taxpayers through revised tax scales, according to the audit office.
The office said the changes will be applied automatically through income tax withholding, starting with the January 2026 payroll, covering state officials and employees, pensioners, as well as hourly government personnel.
However, it clarified that taxpayers with annual taxable income exceeding €22,000
