Cyprus is stepping up scrutiny of influencers, YouTubers and other public figures, as tax and consumer protection authorities intensify efforts to tackle undeclared income and misleading advertising.

Using advanced digital tools and data from platforms such as Instagram, TikTok, X and Facebook, the Tax Department is monitoring individuals whose online lifestyles appear inconsistent with their declared income.

Officers are collecting photos, videos and other public content to assess whether a taxpayer’s visible spending habits reflect what they report in their tax returns.

Tax Inspector Sotiris Markides told Politis that the department is now focusing on “publicly identifiable individuals who exert influence and shape public opinion” and has already summoned some of them to revise or submit corrected declarations.

These include influencers and content creators with active commercial presence online, who are being audited to determine whether they declare turnover, net profits, and pay VAT and income tax accordingly.

In cases where individuals are found to have spent considerably more than they report earning, they are called in for explanations and must present receipts or documentation.

Those who fail to justify discrepancies face additional tax assessments, fines, and in some cases, audits of their bank accounts.

This shift forms part of broader compliance efforts targeting professionals deemed high-risk, including lawyers, doctors, accountants, artistic agents and performance organisers.

The margin for tax evasion in these fields has narrowed due to the introduction of the general health system (Gesy), the obligation to accept card payments, and tougher anti-money laundering legislation.

Markides confirmed that the Tax Department does not conduct indiscriminate “fishing expeditions” due to data protection restrictions.

However, the department has access to a broad pool of information through the government data repository, as well as data-sharing agreements under the European Directive on Administrative Cooperation in the Field of Taxation.

“By analysing and combining all this data, the Tax Department has an almost holistic picture of the tax value of each taxpayer,” he said.

“Those deemed high risk are prioritised for audit, depending on the department’s available resources,” he added.

At the same time, the Consumer Protection Service (CPS) of the Ministry of Commerce is conducting parallel investigations into social media content that may mislead consumers.

It is examining whether influencers have failed to disclose paid partnerships or exaggerated claims about promoted products and services.

Under the European legal framework, any social media post that promotes a product and generates financial gain or benefits such as free products or services must be disclosed as an advertisement.

Energy Minister George Papanastasiou confirmed this in parliament, responding to a question by Green MP Charalambos Theopemptou.

He stated that such promotions fall under the Consumer Protection Law of 2021 and must be clearly marked.

“The presentation of the disclosure must be clear and obvious to the consumer,” he said.

CPS Director Constantinos Karagiorgis said these rules apply not only to influencers but also to actors, singers, footballers, TV personalities and anyone with significant social media reach.

“Influencers, like any other business in the European Union, must comply with consumer laws,” he told Philenews.

“The promotion of a brand’s products or services in a post that generates either monetary revenue or other types of benefits must be disclosed as advertising and presented in a way that is clear and conspicuous to the consumer.”

To support compliance, the CPS, in cooperation with the Advertising Control Agency (ACA), has issued detailed guidelines and examples of acceptable disclosures such as “#ad”, “#Paidpartnership”, or “Paid promotion with…”.

Letters have also been sent directly to companies working with influencers, reminding them of their obligations under the law.

A broader information campaign is now underway, aimed at educating both influencers and the public.