Commissioner of Taxation Soteris Markides has said that the Tax Department is working to ensure a smooth transition from the existing tax regime to the new one, following the voting of the new tax framework by the House of Representatives in December 2025.
Speaking to CNA, Markides said that it is expected that there will be a reduction in taxation for all taxpayers depending on their data. Salaried employees, he went on to say, are the ones directly affected by the implementation of the new provisions, as January 2026 will be the first month during which Income Tax will be withheld from their salaries under the new tax regime.
He noted that the tax reform introduced new deductions and allowances that did not exist previously.
Markides said that a deduction for home insurance against natural disasters of up to €500 has been introduced while insurances for permanent total or partial disability have been added to reduce taxable income, in addition to life insurance.
He also noted that deductions have been introduced -with a family income criterion depending on the number of children- for dependent children, a deduction for rent on a primary residence or interest on a serviced loan of up to €2,000, as well as a deduction for energy upgrades to a primary residence or the purchase of an electric car of up to €1,000 per year.
(Source: CNA)
