Cyprus government proposes tax reforms and expanded child benefits

The Cypriot government has introduced significant policy updates, including a proposed pension reform that seeks to impose social insurance contributions on income from dividends, rent, and investments. For those living solely on dividends, a contribution rate of 15.8% on a calculation base of €11,500 is under consideration. Meanwhile, Finance Minister Makis Keravnos acknowledged the difficulties caused by mandatory cashless rent payments, signaling that the parliamentary finance committee may review these regulations.

In other legislative developments, the government submitted a bill to increase child benefits by 5% to 10%, which would expand eligibility to an additional 2,000 families and 2,800 children. The proposal aims to modify income thresholds to prevent families from losing support due to minor salary increases. Additionally, authorities have issued an orange weather alert for October 14, and the investigation into Takata airbag-related fatalities has concluded. The real estate market reached a September record, with 42% of sales attributed to foreign buyers. Other local news includes the closure of an unsafe building in Larnaca, new school trip guidelines, and the transfer of the Rialto theater in Limassol to municipal management.