High earners receiving between €60,000 and €80,000 will enjoy tax saving by moving to a lower tax bracket

President Nikos Christodoulides has stated repeatedly that the proposed tax reform will “aim at reducing the tax burden on families and working people, modernising the economy, and encouraging competitiveness”.

However, the details of the tax reform indicate that it aims primarily at enhancing the tax-friendly environment for companies, foreign professionals and wealthy property owners, rather than trying to alleviate economic hardship and the tax burden on households by proposing a more progressive tax and distribution system.