Under the decision, the returns must be submitted and the corresponding taxes and contributions paid by the end of November.

However, anyone who files after November 1 will not be considered tax compliant and cannot be issued a tax compliance certificate, Markides said.

Fines have risen to 150 euros from 100 euros under the tax reform that took effect on January 1, and this is the first year the higher fines will be imposed, he said.

Markides said the department’s aim is tax compliance rather than punishing taxpayers. One of the main reasons for the decision, he said, is the widening of the tax base, with 345,000 tax returns expected for the 2025 tax year, up by 100,000 from 245,000 in 2016.

“The tax base is being widened, and we are giving time because the goal is compliance,” Markides said.

The decision also follows requests from organised groups and individual taxpayers for more time to comply, he said.

Because of the gradual move to the new TFA computer system, it may not be possible from November 1, 2026 to change a return’s status from ‘Final Submission’ to ‘Temporary Receipt’, Markides added.

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Amit Meldassi set out to find a way for passengers to experience the satisfying in-between. No more rolling a suitcase inch by slow inch, pushing past crowds, glancing at the time to make sure you still have enough minutes to run to your terminal; or alternatively, spending watching the minutes tick by on an uncomfortable airport seat, knowing you could have gotten an extra hour of sleep.

Meldassi created CyBusy to tell passengers how busy Cyprus airports are, and how early to arrive before your flight; after the idea for the website came to him through his own experiences as a frequent traveler.

Airport operator Hermes Airports has since warned passengers not to rely on unofficial websites to decide when to arrive, saying their forecasts cannot be considered valid and could cause passengers to miss their flights.

Meldassi noticed that the airport busyness and the right time to arrive vary significantly from one flight to another, telling en.philenews that sometimes the airport is relatively quiet, and other times it gets quite busy, he said. Most flight information is about the flights themselves, he continued, and could not find a simple way to answer the question that truly matters to the passenger: “What should I expect at the terminal at the time I arrive?”

Meldassi explains the forecasting algorithm as “a weather forecast for the airport”. The website uses available data and a forecasting model to estimate what passengers are likely to experience over the next few hours and days.

The algorithm analyses scheduled flights and estimates the expected passenger volume for each flight while taking different factors that affect demand into account, he continued. He told en.philenews that passenger’s likely time of arrival at the terminal is just as important as how many passengers are expected to fly.

He said that the model effectively creates an estimated ‘wave’ of passenger arrivals during the hours leading up to departure, and additionally can identify periods when significantly higher congestion is likely to develop due to ‘waves’ from different flights overlapping.

The model uses this information to provide a congestion forecast for the next 72 hours, and passengers can search for their specific flight in order to receive a recommendation on when to arrive at the airport, Meldassi said. He added that as more data is collected, the model will improve.

Hermes Airports responds

In a statement on Monday, Hermes Airports said passenger processing times cannot be reliably predicted from flight schedules alone, which it described as a key input for the website.

Passenger flows depend on conditions at any given time, the operator said, including how many check-in counters each airline has and whether they serve one flight or several, and staffing levels at police passport control, security screening and baggage handling.

Data and forecasts from any unofficial website “cannot, under any circumstances, be considered valid or relied upon”, Hermes said. Relying on them could mean passengers arrive too late and miss their flight, it added.

Hermes advised passengers at Larnaca and Paphos international airports to follow their airline’s instructions and arrive at least two and a half hours before their scheduled departure, unless their airline tells them otherwise. It said passengers can check real-time flight information on its official website and receive automated updates through a chatbot on its social media channels.

Developing the site

The project was developed solely by Meldassi, and went live near the end of September 2026, he said. He also told en.philenews that as a lawyer, it was interesting to see how modern technology, including artificial intelligence, can help turn ideas into a working product.

One of the most challenging parts, he said, was understanding when passengers tend to arrive before their flights and how the waves from different departures overlap. Meldassi said he is improving the algorithm through new data and feedback from users.

He told en.philenews that it is important that CyBusy is free and accessible to everyone. Passengers at the airport can also anonymously report the level of congestion they are experiencing to help other users, he continued.

Meldassi said that he has received feedback and ideas from users that have helped develop new features on the site, and that travelers were finding the website organically through google searches and AI tooks.

For now, Cyprus is the focus, though there is certainly potential for the website to go global, Meldassi said. He also told en.philenews that his priority is to make CyBusy as accurate and useful for passengers flying from Larnaca and Paphos airports before rushing to expand to dozens of destinations at once.

Find CyBusy here.

This article was updated on October 19, 2026 to include a statement from Hermes Airports.

The ministry’s indicative examples are based on 2024 values and divide pensioners into four income groups. Each example takes account of both years of contributions and credited years, and all of them assume seven credited years.

In the low-income group, where rises reach up to 50 per cent, a pension of 411 euros with 30 years of contributions would go up to 577 euros. One of 436 euros with 35 years would rise to 655 euros, and one of 508 euros with 42 years to 764 euros.

For low to middle incomes, rises reach up to 34 per cent. A pension of 497 euros with 25 years of contributions would go up to 667 euros. One of 642 euros with 35 years would rise to 827 euros, and one of 762 euros with 42 years to 976 euros.

Middle incomes would see rises of up to 11 per cent. A pension of 921 euros with 25 years of contributions would go up to 1,019 euros. One of 1,258 euros with 35 years would rise to 1,341 euros, and one of 1,524 euros with 42 years to 1,611 euros.

For higher incomes the increase would be negligible, the ministry said, though no pension would be reduced. A pension of 1,223 euros with 25 years of contributions would rise to 1,271 euros. One of 1,706 euros with 35 years would rise to 1,713 euros, and one of 2,032 euros with 42 years to 2,034 euros.

Full implementation means three years, in line with the ministry’s latest decisions. After the Labour Advisory Board’s most recent session, the labour minister announced three changes to the pension reform bill. Pension increases will be phased in over three years instead of five. The transitional period will be extended from five years to 15. Conditions for widows’ and disability pensions will be improved.

The reform is due to take effect on 1 January 2027. The board now meets twice a week so that the process can be completed as soon as possible.

This is the second attempt at the switch to digital, after problems with the first in the summer. Hellas SAT spokesman Petros Theocharides told Phileleftheros that the change would not happen all at once.

“It will be a smooth and gradual transition,” he said.

What has changed

What has changed now, Theocharides said, is that the requirements for reception quality, meaning televisions and antennas, have been lowered. All channels now broadcast in high definition (HD), and many households and businesses have retuned successfully over the past three months. During that time, Hellas SAT crews have worked with the Deputy Ministry of Research, Innovation and Digital Policy to visit many households and other locations and fix problems.

He said the main problem when the switch was first attempted was the automatic channel search, adding that the move to a high-level digital signal brought more demanding requirements.

A large proportion of people have still not retuned their sets, which is needed to identify any problems, he said.

What viewers need to do

Retuning is a simple automatic channel search, Theocharides said. Viewers who run into problems can contact the technical department on 22000737 for help, or call a technician.

Older televisions will need a decoder, which costs 30 to 35 euros. Theocharides said, however, that it had become clear there were not that many old sets needing one, and that at present people had more questions than complaints.

He urged viewers to check the direction of their antennas, the quality of their cables and their connections, which he said were the three things that solve the problems.

How the switch-off will work

Velister’s existing system will not be switched off on October 10. Its small transmitters, which affect few people, will go first. Theocharides said this would bring problems to light and make the process easier to control.

The large transmitters will follow, and the last to be switched off will be those at Vavatsinia and Madari. The aim is to complete the switch before the Christmas commercial television season. Theocharides said there was leeway until November, although no specific timetable had been set.

Problem areas

Some models made by a well-known television manufacturer cannot pick up the new frequencies. An expert came to Cyprus from abroad to solve the problem, and an upgrade of the affected sets has been set in motion.

Some mountain villages never received Velister’s signal and so cannot receive Hellas SAT’s either. Under an agreement with the Deputy Ministry, Hellas SAT has ordered special transmitters to cover those areas.

In Xylofagou and Xylotymbou, a problem arose because of a peculiarity in the signal. Theocharides said it was caused by interference from Syria. Hellas SAT crews and the Deputy Ministry were at the site on Wednesday to adjust the signal, and the direction of the transmitters has been changed.

Theocharides said the switch brings changes in picture quality, which viewers will notice mainly in sports broadcasts and high-quality films. He added that the system should have been introduced a decade ago, as it was in the rest of Europe.

Both Cypriot citizens and foreign residents can use Digital Citizen, provided they have created an account through CY Login, the Deputy Ministry said. Foreign nationals set up that account using their ARC number together with their residence document or permit.

At this stage, foreign nationals can only add two items to the app: their vehicle’s MOT and, their Fan Card to access sporting events. To add the Fan Card, users must first obtain it through the Cyprus Sports Organisation’s website, fancard.cy, and then add it to Digital Citizen. Foreign nationals should also be able to add their Cyprus residence document or permit to the app by the end of October or early November, the Deputy Ministry said.

The app foreign residents are now navigating is also about to change considerably. The Deputy Ministry has opened a public tender worth an estimated €9.7 million, excluding VAT, to upgrade, maintain and support Digital Citizen and integrate the EU’s Digital Identity Wallet, known as the EUDI Wallet. That figure is roughly 6.5 times the €1.5 million Cyprus paid for the app’s previous phase — reflecting, the Deputy Ministry said, a five-year project that is considerably broader in scope.

The aim is to expand what the app can do, adding more official digital documents and new functions. The Deputy Ministry wants Digital Citizen to become a comprehensive daily tool for dealing with both the state and private businesses. The EUDI Wallet is central to that plan: Cyprus’s national solution is expected to be ready within 2027, once technical interconnections, security and interoperability checks, and the required certification are completed. It also depends on the national electronic ID, which already operates in Cyprus as IDMe.cy.

In practice, the upgraded app will let users:

• Generate certified PDF copies of digital documents with a QR code for verification, and send them electronically to bodies that request them, such as banks
• Give electronic consent for sharing specific data with approved third parties
• Gradually add further documents, including refugee ID, disabled parking permits, the European disability card, birth certificates, driving licence penalty points and property information
• Update personal and contact details through the app
• Receive notifications, for instance about expiring documents
• Track the progress of applications submitted to state services

On security, the Deputy Ministry said protecting personal data and cybersecurity were built into the project’s design from the outset, with vulnerability checks, risk assessments, penetration testing, incident-management procedures, and disaster-recovery infrastructure planned. The EUDI Wallet will go through a European evaluation and certification process before entering live use.

The price tag has already faced criticism. An Audit Office report on the app’s previous phase, published a few months before the new tender, found a “lack of adequate and documented costing,” noting there was no cost estimate or detailed costing in place when that contract was signed. The Deputy Ministry said the €9,778,000 figure is the estimated tender value, not the final contract price, and follows a detailed assessment of the project’s scope, technical requirements, deliverables and full lifecycle. It covers the EUDI Wallet’s development, new functions and documents, migration to the government’s G-Cloud, cybersecurity and recovery infrastructure, five years of maintenance and support, a user-support platform, and staff training, the Ministry said.

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But the numbers suggest that is beginning to change.

The number of Italian citizens officially registered as residents in Cyprus more than doubled between 2013 and 2024, rising from 814 to 1,803, according to AIRE, Italy’s official register of citizens living abroad. That represents total growth of 121%, equivalent to an average annual growth rate of 7.5%. The number increased every year over the period, including by 7.8% in 2024 alone.

The figures refer to Italians registered as residents in Cyprus as of 31 December each year. AIRE registration is a legal obligation for Italian citizens residing abroad for more than 12 months, although the figures do not capture the entire Italian presence on the island, as under-registration and delayed filings mean the actual community is likely to be larger.

Against that backdrop, Cyprus appears to be attracting a steadily growing Italian community. En.philenews spoke to Italian financial influencer Pietro Michelangeli about what is attracting Italians to the island, and the challenges involved in making the move.

Who is Pietro Michelangeli?

Pietro Michelangeli is an Italian financial influencer with more than 360,000 YouTube subscribers. He moved to Cyprus in November, frustrated by what he describes as Italy’s administrative burden, frequently changing rules and tax system.

In April, he launched SoluzioneCipro.com, a platform aimed at helping Italian professionals, entrepreneurs and investors relocate to Cyprus.

Michelangeli says he identified a gap in services tailored specifically to Italian clients, particularly when it comes to navigating the tax and legal implications of moving abroad. The platform aims to guide clients through both the Italian and Cypriot sides of the relocation process and reduce the risk of costly mistakes.

“It started as a hobby in 2017, with a few YouTube videos about money,” he tells En.philenews. “I soon realised the demand for personal finance content in Italy was enormous and largely unmet, so I tried to do the subject justice.

“Nine years later, I think people follow me for two reasons. First, I explain difficult topics in simple terms without making them shallow, which is the opposite of what most short-form content does today. Second, I’ve always treated it as a craft rather than a business to optimise: I built an approach that entertains as well as informs, but I never turned the channel into a money machine.”

Why Cyprus?

The steady rise in AIRE registrations suggests that Cyprus has become a more significant destination for Italian residents over the past decade. The number registered increased from 814 in 2013 to 1,238 in 2019, before continuing to rise to 1,803 by 2024. The community has therefore more than doubled in the space of 11 years.

Spain and Dubai have traditionally been popular destinations for Italians moving abroad, Michelangeli says, but Cyprus is increasingly entering the conversation, helped by its lifestyle, EU membership and tax environment.

“Italians are finally starting to consider Cyprus: a welcoming tax system, very little paperwork, EU presence, same currency, and above all a relaxed way of living. And there’s almost no cultural shock — we’re all Mediterranean people; in some ways I feel we’re cousins.

“My feeling is that Italy has yet to discover Cyprus properly, but it has definitely started.”

What the Italian Embassy says

The Italian Embassy in Cyprus offers a separate, more recent snapshot of the community. According to figures provided by the Embassy, 1,983 Italian citizens are currently registered as residents in Cyprus, up from approximately 1,600 in 2023. This is a different measure from the AIRE year-end figures cited above, which recorded 1,803 registered residents as of December 31, 2024; the Embassy’s count reflects a more current tally rather than the same annual snapshot. The community is spread across the island, with a particularly significant presence in Limassol and Larnaca, the Embassy said, and mostly comprises pensioners, spouses of Cypriot citizens and workers, with entrepreneurship comparatively limited and concentrated in the restaurant and catering sector.

The Embassy also reported a recent rise in interest from Italian businesspeople and companies, with a growing number approaching it directly over the past two to three months to discuss their activities or plans to establish a business in Cyprus. It linked the trend to a Business Forum it organised in Limassol at the end of May, and said it is compiling a more detailed list of resident Italian companies with support from the Italian Chamber of Commerce.

The administrative challenges

While Cyprus may offer several attractions, relocating is not without its complications. Michelangeli says many of the biggest difficulties arise on the Italian side rather than from Cypriot rules.

“The hard part is Italy, not Cyprus. We constantly deal with shareholdings in Italian companies, property that was bought years ago, and other ties that have to be cleared before making the move. Local accountants here will simply overlook them, not out of bad faith — they aren’t required to know Italian law — but the result is the same: mistakes that only surface years later, when they’re expensive to fix.”

“And this is why the two sides can’t be handled by two separate professionals working in parallel,” he added.

“Somebody has to see the whole picture, or things fall between the cracks, and that’s what we’re doing with SoluzioneCipro.”

For Italians considering a move, the growing numbers do not necessarily mean that relocation is straightforward. The AIRE figures record people who are officially registered as living in Cyprus, but they do not explain why they moved, their occupations, income levels or whether they came for work, business, retirement or investment.

What does the influx mean for Cyprus?

The increase in registered Italian residents is part of a broader question facing Cyprus as the island attracts more foreign residents and businesses.

Michelangeli sees the impact of a growing expatriate population as a mixed picture. While foreign residents and businesses can bring money into the economy, he says rising housing costs are becoming an increasingly sensitive issue, particularly in Limassol and Paphos.

“Expats need to be respectful of Cyprus,” he said.

“Sometimes I see foreigners offering €3,000 a month for a two-bedroom simply because it’s easier than looking properly, and they don’t realise what that does to the local market. You’re not arriving in a resort, you’re joining a country. The supply problem is ultimately for Cyprus to solve, but how each person behaves still matters.”

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The Cypriot roots of George Michael and Cat Stevens are well known, but Cyprus also has some fascinating connections to the music legends of a bygone era. David Bowie holidayed here with members of the Spiders from Mars, the future members of ABBA experienced a formative moment in Famagusta, and Rod Stewart was flown to the island for one of its most extravagant private parties.

Their links to Cyprus are very different, but all three offer unusual chapters in the island’s musical history.

David Bowie’s holidays in Kyrenia, Xeros and Lefkara

Bowie’s connection with Cyprus came through his first wife, Mary Angela Barnett, better known as Angie Bowie, who was born in Ayios Dometios, Nicosia, in 1949 and spent much of her childhood on the island.

Her father worked for the Cyprus Mines Corporation and, even after Angie was sent abroad for her education, she regularly returned to Cyprus to visit her family.

Speaking in a 2016 Phileleftheros interview with Thanasis Fotiou, Angie recalled that Bowie accompanied her to Cyprus after their marriage in 1970.

“A few times, we had come with David to Cyprus for holidays, after our wedding in 1970. We had brought little Zowie with us,” she said.

On one trip, they stayed with her parents in Xeros. On another, they travelled with Mick Ronson, Trevor Bolder and Woody Woodmansey, key members of Bowie’s Spiders from Mars line-up, and rented a villa outside Kyrenia.

In a first-person account of her Cyprus memories written in 2000, Angie placed the Kyrenia holiday in 1972 and recalled that Bowie was particularly taken with Cyprus. On an earlier family visit, she said, Bowie drove her to Lefkara, the village known for its traditional handmade lace.

It was there he bought pieces of Lefkara lace for the dining-room table and the vanity in their bedroom. It’s a small detail, but one that gives us a glimpse of Bowie away from the stage during a period in which his career was being transformed by the emergence of Ziggy Stardust.

The island also later appeared in his music.

Move On was the third track on Lodger, released in May 1979. Written by Bowie, the song centres on restlessness and travel, moving through references to Africa, Russia and Kyoto before Cyprus appears as somewhere more personal.

Bowie sings: “Cyprus is my island, when the going’s rough.”

The Cyprus holiday that helped create ABBA

ABBA’s connection to Cyprus came before the group itself existed.

According to ABBA’s official website, Björn Ulvaeus and Agnetha Fältskog travelled to Cyprus in the spring of 1970 on their engagement trip, accompanied by Benny Andersson and Anni-Frid “Frida” Lyngstad.

All four already had musical careers, but they were not yet working together as a group.

During the holiday, they sang together and were struck by how their voices sounded as a quartet. ABBA’s official history says “the idea for a collaboration between the four had been born” during the Cyprus trip. Writing about this early period, the same official account quotes Frida describing the emerging collaboration as “the birth of ABBA in a way”.

The trip took the four to Famagusta, then one of the Mediterranean’s leading tourist resorts. Its Varosha district was abandoned following the Turkish invasion in 1974, just four years after ABBA’s visit, and has remained a ghost town ever since.

Their informal singing also led to a spontaneous performance for UN soldiers stationed in Cyprus, according to a history of the group published by Biography.com.

Art magazine Frieze has separately identified the Perroquet nightclub in Varosha as the venue for a 1970 performance by an early iteration of ABBA, although the precise venue is less firmly documented than the Cyprus trip itself.

After returning to Sweden, their collaboration developed further. By 1974, four years after their Cyprus holiday, they had won Eurovision with Waterloo and become international stars.

Rod Stewart’s £750,000 Anassa performance

Rod Stewart’s Cyprus connection came much later and was considerably more extravagant.

In March 2002, British businessman Philip Green brought around 200 guests to Cyprus for his 50th birthday celebrations at the five-star Anassa hotel near Polis Chrysochous.

The Independent reported at the time that the guests boarded a privately chartered Airbus A300 at Luton without initially knowing their destination. The three-day celebrations were estimated to have cost £5 million.

Stewart was among a remarkable musical line-up that also included Tom Jones, George Benson and Earth, Wind & Fire.

He was reportedly paid £750,000 for a performance lasting about 45 minutes.

The main celebration was a Roman-themed toga party, with Green appearing as Emperor Nero. Reports at the time also described £50,000 being spent on flowers, £35,000 on caviar and a birthday cake weighing around 150kg.

Unlike Bowie and ABBA, there is no strong evidence that Stewart developed a particular personal attachment to Cyprus or regularly holidayed on the island.

Together, the three stories show very different sides of Cyprus’ place in music history: Bowie discovering the island through his wife and family, ABBA finding the beginnings of their four-person collaboration in Famagusta, and Stewart arriving decades later for one of the island’s most extravagant private concerts.

The Embassy of Israel in Nicosia told Philenews that an estimated 15,000 to 20,000 Israelis currently consider Cyprus their home, describing the figure as a significant increase over the years.

An exact number is difficult to establish, however, because many Israelis living on the island also hold EU passports and may therefore not appear in statistics as Israeli nationals.

The growth comes against the backdrop of an unusually sustained rise in emigration from Israel.

A recent Tel Aviv University study, reported by The Times of Israel, found that about 49,000 Israelis left the country for more than a year in both 2023 and 2024. Researchers estimate that nearly 50,000 Israelis who departed during the 2025 calendar year will ultimately be classified as emigrants, meaning they remained abroad for at least 12 months. Final official figures for 2025 will not be available until early 2027.

Why Israelis are leaving

Researchers point to a combination of political and security pressures behind the elevated levels of emigration.

The Tel Aviv University report argued that Israel’s prolonged military conflict and political tensions have contributed to the trend, warning that continued high levels of departures could eventually have implications for the country’s economy and security.

A separate study by Oranim College sociology professor Lilach Lev Ari found that many Israelis leaving the country cite dissatisfaction with government policies that they believe could weaken democratic institutions, as well as concerns over the security situation.

Another study, also reported by The Times of Israel, conducted by the Israel Tax Authority’s Planning and Economics Division, suggests the composition of those leaving is also changing.

Its analysis found that the rate of emigration among affluent Israelis rose sharply in 2023 and 2024 to record levels and was almost twice the level recorded up to 2019.

Doctors, engineers and other highly educated, high-earning workers are disproportionately represented among those leaving, according to the study, raising concerns about the loss of skilled workers and future tax revenue.

Why Cyprus is attracting Israelis

Against this wider backdrop, the Israeli Embassy says Cyprus is increasingly viewed as an attractive place to live, invest and do business.

Geographical proximity and close bilateral relations are major factors, it said, alongside several practical considerations.

“Other considerations include the strong ‘value for money’ proposition, the favourable tax regime, the high standard of services, the ease of doing business, the sense of safety and security, and the cultural similarities between the two countries,” the embassy said.

Economic ties have also continued to deepen.

According to the embassy, bilateral trade exceeded €600 million in 2025, while Israeli investment in Cyprus is expanding across sectors including energy, real estate, technology and tourism.

Tourism provides another indication of the strength of the relationship. Israel was Cyprus’s second-largest tourism market in 2025, accounting for 13% of all arrivals, or close to 600,000 visitors, according to Cyprus Statistical Service figures.

The embassy said these links are increasingly encouraging Israeli companies to look at Cyprus not simply as a market but as a base from which to operate internationally.

“Against this backdrop, Cyprus is increasingly viewed by Israeli companies and entrepreneurs not only as an attractive market in its own right, but also as a regional base and gateway to the EU and other international markets,” it said.

“Its geographical proximity to Israel, EU membership, business-friendly environment, highly developed professional services sector and strong bilateral relations make Cyprus particularly well positioned to serve this role.”

The future outlook

Business ties are increasingly extending into research and technology.

Over the past five years, Cyprus and Israel have developed co-funded research and innovation programmes involving Cyprus’s Research and Innovation Foundation, Israel’s Ministry of Science and Technology and the Israel Innovation Authority.

The programmes have supported cooperation in areas ranging from digital technologies and renewable energy to health, agriculture and the environment.

The embassy sees further potential in agriculture and water technology and is exploring the possibility of establishing a pilot demonstration farm in Cyprus, where Israeli agri-tech solutions could be tested under local conditions and demonstrated to Cypriot and regional farmers.

Energy storage, artificial intelligence and cybersecurity are also seen as promising areas for collaboration.

One existing example is a project between Israeli company BaroMar and the Cyprus Institute, which is integrating and testing an underwater compressed-air energy-storage system at the institute’s PROTEAS research facility in Cyprus.

“Pilot projects can provide an effective mechanism for testing and demonstrating innovative Israeli technologies in the Cypriot market,” the embassy said.

“Overall, the Embassy sees significant scope for strengthening the existing framework of cooperation by moving beyond traditional business links towards joint projects, pilot demonstrations, technology testing and commercial partnerships, creating opportunities for both Israeli and Cypriot companies to access wider regional and EU markets.”

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The government presented its pension reform proposal to trade unions and employers on Wednesday, saying all 123,000 existing old-age pensioners would benefit from an increase, with greater support directed towards lower pensions.

It also proposes reducing the actuarial adjustment for people retiring at 63 from the current 12% to 7.5% on the basic pension component.

The changes are not yet law. Further discussions with the social partners are due on 28 August, while the government is aiming for implementation from 1 January 2027.

For foreign residents and people planning to move to Cyprus, however, many of the most important questions concern how the existing pension system works.

Key takeaways

• Pension rights in Cyprus are mainly based on Social Insurance contributions, not nationality.
• The normal pension age is 65, although some people can claim from 63 under stricter conditions.
• Working in other EU countries can help someone qualify for a Cyprus pension.
• Cyprus also has social-security agreements with countries including the UK, Canada and Australia.
• Leaving Cyprus does not automatically mean your contributions are refunded.
• People can receive both a Cyprus and UK pension if they qualify for each.
• The reforms announced this week remain proposals until approved by parliament.

Who builds pension rights in Cyprus?

Employees and self-employed people working legally in Cyprus are generally covered by the Social Insurance Scheme, including foreign nationals.

Employees currently pay 8.8% of insurable earnings into Social Insurance, with employers paying the same rate. Employees also contribute 2.65% to GeSY, which is separate from pension contributions.

For monthly paid workers, the maximum earnings subject to Social Insurance contributions in 2026 are €5,742 per month.

Self-employed people currently pay 16.6%, generally based on prescribed insurable earnings linked to their occupational category rather than simply their actual monthly profit.

When can you receive a Cyprus pension?

The normal statutory pension age is 65.

Eligibility is more complicated than simply working for 15 years. Under current rules, a person generally needs at least 15 actual basic insurance points, at least 780 weeks since their insurance began, and must satisfy an additional test based on the density of their insurance record.

Some people can claim from 63 if they meet stricter contribution conditions. At present, retiring at exactly 63 can result in a permanent actuarial reduction of up to 12%.

That is one of the areas targeted by Wednesday’s reform proposal, which would reduce the adjustment to 7.5% on the basic pension component.

What if you have worked in several countries?

For people whose careers span Cyprus and other EU countries, pension rights can generally be coordinated.

Insurance periods completed in EU countries, the EEA and Switzerland can be taken into account when determining whether someone qualifies for a pension.

This does not create one combined European pension. Instead, each country calculates and pays the pension relating to the insurance accumulated there.

So somebody who has worked only part of their career in Cyprus should not assume those years are lost.

What about non-EU nationals?

Third-country nationals working legally in Cyprus also build Social Insurance rights.

Whether contributions made elsewhere can be taken into account depends partly on whether Cyprus has a social-security agreement with that country.

Cyprus currently has bilateral agreements with countries including the United Kingdom, Egypt, Canada, Quebec, Australia, Serbia and Syria.

Not every country is covered. Israel, for example, is not currently on Cyprus’s official list of bilateral social-security agreements.

Do you get your contributions back if you leave Cyprus?

Not automatically.

Cyprus Social Insurance is not a personal savings account that can just be cashed out when someone moves abroad.

There is a statutory lump-sum benefit for some people who reach 68 without qualifying for a pension, but separate conditions apply. These include at least six actual basic insurance points and at least 312 weeks since insurance began.

It should therefore not be described as a general refund of contributions.

What are the rules for asylum seekers and refugees?

Asylum seekers can currently work in specified sectors and occupations nine months after applying for international protection.

Once legally employed, Social Insurance contributions paid through that employment form part of their insurance record.

Neither asylum status nor refugee status automatically creates a pension entitlement. Eligibility still depends on the person’s Social Insurance history and the usual pension rules.

Can you receive both a UK and Cyprus pension?

Yes.

People who qualify under both systems can receive a UK State Pension and a Cyprus statutory pension separately.

Brexit did not end social-security coordination between the UK and Cyprus. Depending on the person’s circumstances, rights are protected through the Withdrawal Agreement or the EU–UK Trade and Cooperation Agreement.

The UK State Pension is also uprated annually for pensioners living in Cyprus, meaning it is not frozen as it is in some countries outside Europe.

How are foreign pensions taxed in Cyprus?

Cyprus tax residents receiving a foreign pension can generally choose each year between normal income-tax rates and a special regime under which 5% tax applies to the part of the pension exceeding €5,000 annually.

Under the ordinary Cyprus tax bands applying from 2026, the first €22,000 of taxable income is taxed at 0%.

For British pensioners, the UK–Cyprus Double Taxation Convention is also important. The UK State Pension and most private pensions paid to a Cyprus tax resident are generally taxed in Cyprus.

UK government-service pensions are an important exception and are generally taxable in the UK, subject to the treaty’s specific rules.

Can you leave Cyprus and keep your pension?

Within the EU, EEA and Switzerland, statutory pensions are generally protected by European social-security coordination rules and can continue to be paid after a move.

Cyprus’s bilateral agreements also contain provisions allowing pensions to be paid abroad in covered cases.

People planning to retire to a country outside these arrangements should check their individual situation with the Cyprus Social Insurance Services, particularly where supplements or non-contributory benefits are involved.

What could change from 2027?

The government’s proposal would increase pensions, particularly at the lower end, and alter the current penalty for retirement at 63.

Labour Minister Marinos Moushiouttas said all 123,000 existing old-age pensioners would benefit, while lower-income pensioners would receive the greatest increases.

The wider reform also includes measures aimed at improving pension adequacy and addressing gaps in insurance histories.

For now, however, these are proposals rather than existing entitlements. Anyone working, retiring or planning to move to Cyprus should continue to base financial decisions on the rules currently in force until the legislation is approved.

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Tourism remains busy, particularly in coastal resorts such as Ayia Napa and Protaras, but residential and commercial areas in Nicosia, Limassol, Larnaca and Paphos can feel noticeably calmer. Traffic becomes lighter, some independent businesses close for annual leave and handwritten holiday notices begin appearing on shopfronts.

The slowdown is not an official two-week shutdown. It is a combination of the 15 August public holiday, the summer heat, school holidays and the tendency of many employees and small-business owners to take their main annual break at around the same time.

The centre of the holiday period: Dekapentavgoustos

The main date around which the August slowdown develops is 15 August, known in Greek as Dekapentavgoustos.

The day marks the Feast of the Dormition of the Virgin Mary, one of the most important celebrations in the Greek Orthodox calendar. It is sometimes described as the “Summer Easter” and is an official public holiday in Cyprus.

Many businesses arrange staff leave around the holiday, while some smaller companies, private practices and family-run shops close for one or two weeks. The precise dates vary considerably, however, and there is no standard nationwide closure period.

In 2026, 15 August falls on a Saturday. Banks are normally closed for transactions on Saturdays, meaning the holiday will not create an additional weekday bank closure this year. The broader slowdown may still be felt during the surrounding days as employees take annual leave.

Where do residents go?

Cyprus’s cities do not empty completely, but many residents use this time to leave for holidays or spend more time outside the main urban centres.

Some families return to their home village or visit relatives and attend religious or cultural festivals. Others travel to coastal areas, stay in holiday homes or go abroad.

The Troodos Mountains are also a popular summer destination. Places such as Kakopetria, Platres and Pedoulas offer a cooler alternative to the cities. Official tourism figures indicate that average maximum temperatures during July and August are considerably lower in Troodos than on the central plain.

What closes and what stays open?

Public offices and bank branches close on official holidays, although in 2026 the 15 August holiday falls at the weekend. Outside the holiday itself, government departments continue to operate, but appointments and administrative processing may be slower when staff are on annual leave.

Small businesses are more likely to close for an extended period. Mechanics, private medical practices, dry cleaners, professional offices, independent retailers and other family-run businesses may take a collective break lasting several days or longer.

Restaurants and cafés vary according to location. Businesses in tourist areas and coastal resorts are often at their busiest, while some neighbourhood restaurants, tavernas and independent coffee shops in the cities close to give staff time off.

Opening hours should not be assumed. Under Cyprus employment rules, 15 August is a paid holiday for retail, hotel and leisure-sector employees. Hotels and leisure businesses may continue operating, while employees who work are entitled to additional compensation.

Emergency and essential services continue to operate, although customer-facing offices and non-urgent private services may have reduced availability.

Practical advice for new residents

Try to complete time-sensitive administrative work, repairs and appointments before the middle of August. Government services do not officially stop for several weeks, but staff leave can affect appointment availability and response times.

Contact businesses directly before visiting. Smaller companies often announce their holiday dates with a notice on the door or through Facebook and Instagram rather than updating their listed opening hours online.

Allow extra time for non-urgent home repairs, private medical appointments and professional services. A business may remain reachable by telephone or email even when its premises are closed, but responses can take longer.

For those who remain in the cities, there is an advantage: roads and central neighbourhoods are generally quieter, particularly in Nicosia, and parking can be easier to find.

The August slowdown is therefore less a formal shutdown than a widely shared pause. Tourist areas remain active, essential services continue and larger businesses may operate normally, but much of everyday urban life moves at a slower pace around 15 August.