Paphos is set to strengthen its links with Germany in the summer of 2026, as Ryanair expands its presence on the route and Lufthansa adds scheduled flights from Munich.

This move is seen by local tourism officials as essential for improving the island’s performance in one of Europe’s largest outbound markets.

Specifically, the Paphos region tourism board (Etap) said the additional capacity would make the destination more accessible to German travellers and support efforts to extend the tourist season beyond the peak summer months.

Under Ryanair’s summer programme, direct services to Paphos International Airport are expected from several German cities, delivering a total of nine inbound flights per week.

These include twice-weekly connections from Berlin-Brandenburg, Cologne and Dusseldorf, alongside three weekly services from Memmingen, near Munich.

With the new year underway, the tax department is moving to apply a tougher enforcement framework, as tax reform measures aimed at improving compliance and collectability take effect.

According to the legislation approved by parliament and published in the Official Gazette of the Republic, authorities concluded that existing enforcement tools were no longer sufficient to meet the needs of the economy or taxpayers.

The restructured framework, therefore, introduces more targeted and immediate measures, while seeking to operate with greater flexibility and fairness.

Among the most significant changes is the introduction of temporary business closures in cases of persistent non-compliance.

Under the new framework, a tax inspector may suspend a business’s operations and seal its premises where the owner fails to submit two income tax returns, at least twelve monthly withholding statements or at least three VAT returns, provided these failures occur on or after January 1, 2027.

Working from home in the public sector will begin on a limited basis this year, with civil servants allowed to work away from the office for up to 20 days in 2026, following a decision by the Cabinet.

The move marks the first phase of a gradual rollout, aimed at ensuring a smooth transition for both employees and citizens.

At the same time, officials do not rule out an expansion of remote working days in the years ahead, depending on how the scheme performs.

In that context, the effectiveness of the new arrangement, employee productivity and its impact on public service delivery will be key factors in determining whether working away from the office is extended beyond the initial threshold.

The legal framework regulating remote working in the public service will formally enter into force on April 2, 2026, after the Council of Ministers set the start date in mid-December.

The Central Bank of Cyprus (CBC) announced on Wednesday the launch of the first institutionalised dialogue with representatives of key sectors of the Cypriot economy.

The aim of this new initiative is to strengthen policy-making through structured engagement with the business community.

According to the CBC, the initiative establishes regular dialogues between the Central Bank of Cyprus and representatives of Cyprus’ business community as part of a new formal framework for ongoing consultation.

The central objective of the initiative is to allow closer monitoring of sectoral developments, economic challenges and future prospects through direct information drawn from the stakeholders themselves.

A further aim is to make use of views and policy proposals submitted during these discussions in shaping the policy direction of the Central Bank of Cyprus.

Cyprus and Ukraine marked an important moment in their bilateral relations this week, with an official dinner held in Nicosia on the occasion of the first-ever visit to Cyprus by a Ukrainian minister, Ukraine’s Minister of Foreign Affairs Andrii Sybiha.

The event was emphasised by Philokypros Rousounides, secretary general of the Cyprus Chamber of Commerce and Industry (Keve), through a post on his personal social media platform, where he shared details of the dinner he attended.

In his personal post, Rousounides said the dinner was attended by the Ukrainian foreign minister, Ukraine’s ambassador to Cyprus Serhii Nizhynskyi, the president of the Cyprus-Ukrainian Interstate Association Joseph Hadjihannas, as well as MP Demetris Demetriou.

Referring to the event on his personal platform, Rousounides said “the presence of senior political, diplomatic and economic figures highlighted the importance of further strengthening dialogue and cooperation between Cyprus and Ukraine, both at the diplomatic and economic levels.”

Cyprus continues to offer relatively cheaper borrowing for households, particularly for housing, while delivering the lowest deposit returns in the euro area, according to the European Central Bank (ECB).

The ECB’s latest interest rate figures for November 2025 cover loans and deposits across the euro area, shedding light on borrowing and savings conditions and highlighting Cyprus’ position relative to its peers at a time of easing credit conditions and persistently weak deposit returns.

Bank interest rates on loans reflect the rates applied by monetary financial institutions to euro-denominated loans issued to households and corporations resident in euro area countries, offering a snapshot of the cost of credit across the bloc.

In November 2025, the average euro area cost of borrowing for households for consumption stood at 7.33 per cent, remaining steady compared with the previous month.

Blue Island Plc has announced that the acquisition of immovable property at Akrotiri in Limassol has been completed, finalising a transaction first disclosed in November 2025.

“Further to our announcement on November 19, 2025 regarding the above subject, we wish to announce that the transfer and registration of the land under the name of Blue Fisheries Ltd has been completed,” the company said.

The land has been registered in the name of Blue Fisheries Ltd, a subsidiary company that is fully owned by Blue Island Plc, according to the announcement.

Employers and payroll executives are being invited to a pair of webinars aimed at clarifying how Cyprus’ recent tax reform will affect the taxation of individuals from 2026 onwards.

Organised jointly by the office of the Tax Commissioner and the Employers and Industrialists Federation (Oev), the sessions will walk participants through the main changes concerning natural persons, with particular emphasis on how tax deductions should be declared for the 2026 tax year, including the revised Form T.F. 59.

The initiative is targeted mainly at company staff responsible for payroll administration, with organisers allowing multiple participants from the same employer.

Questions will be taken during the sessions, though participants have been asked to keep them strictly within the scope of the presentation.

To ensure wider access, the same webinar will be delivered twice via Zoom.

Registered unemployment in Cyprus fell in December 2025, with official data showing fewer people out of work compared with both the previous month and the same period a year earlier, reflecting easing pressures in key sectors of the economy.

According to a report from the Cyprus Statistical Service (Cystat) released on Wednesday, the number of unemployed persons registered at District Labour Offices on the last day of December 2025 reached 11,901 persons.

Based on seasonally adjusted data, which reflect the underlying trend of unemployment, registered unemployment in December 2025 declined to 9,916 persons, compared with 10,013 persons in November 2025.

On an annual basis, registered unemployment fell by 481 persons, representing a decrease of 3.9 per cent compared with December 2024.

Cyprus recorded the lowest inflation rate in the eurozone in December, with consumer prices estimated to have risen by 0.1 per cent year on year, unchanged from November, according to preliminary data released by Eurostat on Wednesday.

The figure contrasts with developments at euro area level, where annual inflation is expected to have eased to 2 per cent in December, from 2.1 per cent in November. 

Among the larger economies, inflation in December was estimated at 2.8 per cent in Germany, 3.1 per cent in Spain and 3.7 per cent in France, while Italy, by contrast, recorded a significantly lower rate of 0.7 per cent. 

Looking at the main components of euro area inflation, services continued to post the highest annual rate, seen earlier in the autumn.  

ASBISC Enterprises Plc, the Cyprus-based IT distributor primarily known as Asbis, has announced the publication schedule of its periodic financial reports for the 2026 financial year, informing investors of key reporting dates and regulatory decisions affecting disclosures.

“Dates of publication of periodic reports and information on submitting consolidated periodic reports in the financial year 2026,” the board of directors of ASBISC Enterprises Plc said in a current report numbered 1 of 2026.

The announcement was issued under the legal basis of Article 56 item 1 section 2 of the Act on Public Offering relating to current and periodic information.

The board said the consolidated quarterly report for the fourth quarter of 2025 will be published on February 26, 2026.

C.O. Cyprus Opportunity Energy Public Company Ltd announced this week that it undertook no operational activities during 2025, as it provided an update to the market on developments relating to its business plan.

The company, which trades on the New Market of the Cyprus Stock Exchange (CSE), said the update was issued as part of its ongoing disclosure obligations.

In relation to developments concerning its business plan, the company said it did not carry out any operational activities during the course of 2025.

The company recalled that it held an Extraordinary General Meeting of shareholders in the fourth quarter of 2024, at which resolutions were approved for the restructuring of its share capital.