On 12 March 2025, the Cyprus International Businesses Association (CIBA) submitted a letter following its review of the 26 February 2025 presentation titled “Cyprus Tax Reform: Recommendations for a Modern Tax System.”
In their communication, CIBA:
- Posed a series of detailed questions to Finance Minister Makis Keravnos, Deputy Minister Irine Piki, the House Finance Committee, and the reform working group, seeking clarification mainly on:
-The proposed increase in corporate tax (from 12.5 % to 15 %)
-The methodology behind revenue projections and economic growth assumptions
-Whether the reform goals genuinely align with enhancing GDP and attracting foreign direct investment
- Reaffirmed its longstanding support for a comprehensive overhaul of Cyprus’s tax framework to boost economic competitiveness—so long as reforms remain in harmony with EU obligations and international developments, particularly in light of strategic agreements with the United States
A follow‑up report on 23 March 2025 clarified that this letter was signed by CIBA Board President Doxia Nikia Hadjivassiliou, and addressed to the same officials as above. The letter also noted concerns about foreign investment drain linked to recent tax changes and emphasized the importance of preserving Cyprus’s competitive edge.
Find the full letter here
