Nicosia, Cyprus. The government announced a €200 million package of eight measures aimed at combating rising costs after four weeks of war in the Middle East. The measures include tax changes, fuel relief and support for parts of the tourism sector.
Tax and fuel measures
The reduced five-per-cent rate of value added tax on electricity will be extended until May next year, after initially being expected to expire in May this year. The fuel consumption tax will be reduced by 8.33 cents per litre between April and June.
The rate of VAT on meat, poultry and fish will be set to zero between April and September. “Green taxes” on fuel, which had been set to raise the retail price of fuel by nine cents per litre, will not be implemented.
Support for hotels and airlines
The government will cover 30 per cent of the wages of all workers in the hotel sector during April. It will also draw up a “special plan for more support for airlines to secure the seamless connectivity of the country with important destinations for the attraction of tourists”.
Electricity market debate
The Cyprus Association of Electricity Suppliers’ Representatives (Sepie) said a competitive electricity market remains the most efficient model for achieving lower costs for consumers and a sustainable energy transition.
In a statement following public debate over potential changes to market design, the association reaffirmed that the competitive electricity market model applied across the European Union is “the most efficient, transparent and effective model of market operation”. It said the framework ensures optimal use of available resources and supports the formation of affordable electricity prices.
New-build apartment demand in 2025
Cyprus’ market for newly built residential property continued to show strong demand for apartments in 2025, with buyers focusing mainly on lower and mid-range price brackets, according to Landbank Analytics.
The analysis, based on contracts of sale submitted to the department of lands and surveys for newly built residential properties sold off-plan or under construction, found that apartments remained the dominant choice across the island. The €150,000 to €300,000 category was the most popular, accounting for 3,396 transactions, or 53.2 per cent of the total.
Which of the announced measures do you expect to have the biggest impact on your household costs?
