Four major Cyprus football clubs are expected to be reinstated in the government’s debt repayment scheme after recent confusion over their UEFA licensing status and tax obligations.
Tax Commissioner Sotiris Markides will reinstate APOEL, Apollon, Anorthosis and Ethnikos Achnas in the scheme following approval from President Nikos Christodoulides and Finance Minister Makis Keravnos, according to philenews sources.
The clubs were temporarily removed from the repayment programme but have since made partial payments totalling €2 million towards new tax debts of €5.3 million incurred since joining the original scheme.
APOEL has paid €700,000 of its additional tax liabilities, whilst Apollon and Anorthosis have each settled 40-50% of their new debts totalling €1 million combined. Ethnikos Achnas owes tens of thousands of euros.
The new debts comprise €1.8 million for APOEL, €1.3 million for Apollon, €650,000 for Anorthosis and €100,000 for Ethnikos Achnas. These amounts are in addition to existing tax debts exceeding €25 million accumulated by most football clubs.
Revised payment terms
Tax Department officials will adjust instalment amounts for the four companies. From the original 168 instalments outlined in the May 2023 scheme, approximately 135 instalments remain, which will incorporate both outstanding new debts and previous obligations.
The monthly payments for the four clubs will consequently increase. Authorities warned of strict monitoring, with automatic removal from the scheme if clubs miss three payments. Removed clubs would face frozen interest and penalties being reactivated.
Τhe reinstatement removes potential obstacles to meeting UEFA’s June criteria, which must be submitted by the end of next month.
Compliance will prevent activation of prosecution proceedings and tax collection measures, including property liens and bank account freezes.
Pafos, Aris and AEL will settle their complete tax obligations and receive applicable tax discounts.
Political pressure
The decision followed behind-the-scenes consultations involving clubs, political parties and the Cyprus Football Association with the Presidential Palace. Some critics suggested the government’s initial hesitation to decide reflected attempts to avoid political responsibility.
The clubs were originally required to settle debts by end-2024 but received additional time to raise funds, which some observers interpreted as leniency raising questions about equal treatment of taxpayers.
President Christodoulides stated the Tax Commissioner held legal authority for reinstatement decisions, whilst the Finance Minister called for arrangements enabling clubs’ participation.
Government spokesman Konstantinos Letymbiotis said procedures were underway to definitively resolve debt issues potentially dating to the 1990s.
Additional revenue will flow to state coffers from increased betting tax rates of 5% implemented at the beginning of the year, generating over €1 million in the first two months – an 80% increase compared to the previous year.
