Nicosia, Cyprus. Cyprus’ Tax Department is preparing extensive inspections of businesses operating in coastal areas during July and August as part of measures under the government’s tax reform programme to tackle tax evasion. The checks will mainly target businesses in tourist areas whose activity peaks during the summer season.
Inspection focus
According to a report released on Tuesday by Philenews, the inspections will focus on two areas: outstanding tax debts and the issuance of receipts. The campaign will begin with checks related to the issuance of receipts.
Legal framework
Under the new legal framework, which came into force on January 1, 2026, businesses, legal entities and individuals with tax debts exceeding €20,000, as well as companies failing to issue receipts, may be subject to temporary closure. Companies found to be violating tax legislation could have their premises sealed until their owners comply with the law.
Implementation plans
The report said the inspections will be conducted on site and will be based on a model previously used in Greece. The Tax Department has completed the necessary preparations and drawn up a list of businesses to be targeted.
Operational procedures
Procedures and operational guidelines for tax officers have also been established. Philenews, citing information it received, reported that tax officials will position themselves outside businesses and randomly select customers leaving the premises.