Cypriot football clubs face tax ultimatums before new season

Several Cypriot First Division football clubs, including APOEL, Anorthosis, and Apollon, are facing urgent threats of bank account seizures by the Tax Department. The authorities have issued a strict ultimatum requiring all outstanding tax debts to be settled by August 20, 2026. This action follows the potential breach of a 2023 Cabinet-approved debt repayment arrangement, which had been honored by all clubs until May of this year.

While the clubs had successfully obtained UEFA certification for European and domestic competition participation earlier in the year, recent audits revealed that multiple entities began accumulating new tax debts shortly after receiving this clearance. Reports suggest four or five clubs are currently under scrutiny for these mounting arrears. If the clubs fail to meet the August 20 deadline, the Tax Department intends to trigger automatic sanctions, including the freezing of bank accounts and potential exclusion from the established debt settlement scheme due to consecutive payment failures.

The current situation remains critical as the league season is set to commence shortly. The Tax Department has explicitly warned that failure to comply will result in immediate enforcement measures without further notice, potentially jeopardizing the operational status of the involved clubs as they approach the start of the national championship.