Cyprus implements tax relief measures on essential goods and energy

As of November 2026, Cyprus has implemented a series of tax relief measures aimed at mitigating the impact of the rising cost of living on household budgets. These interventions apply directly to consumer daily expenditures, encompassing supermarket goods, transportation costs, and energy bills. The government has utilized a combination of zero-rate VAT applications and reductions in excise duties to lower costs for the general population.

Specific essential goods now subject to a zero VAT rate include fruits, vegetables, meat, poultry, fish, bread, milk, coffee, sugar, and baby food. Additionally, the relief extends to personal hygiene products, such as diapers and feminine hygiene items. For categories including meat, fish, bread, milk, coffee, and sugar, the zero VAT policy is scheduled to remain in effect until May 31, 2027. While these measures are designed to provide immediate financial relief, officials note that the application methods and expiration dates vary across different product and service categories to address specific economic needs effectively.