Cyprus tax reform favours higher earners

The Central Bank of Cyprus (CBC) has found that Cyprus’s 2026 personal income tax reform will deliver its largest financial gains to upper-middle-income and high-income households, according to a recently published working paper.

The paper, titled Assessing the Distributional and Fiscal Impacts of Cyprus’s Personal Income Tax Reform, was prepared by Aris Avgousti, Charalambos Michael and Georgiana Photiadou and examined how changes to personal income taxation could affect households, public...