Since the beginning of 2024, the Cyprus Tax Service has tightened its debt collection policy. In the first few months of last year, €1.39 million was frozen in debtors' bank accounts — nearly ten times more than in the same period in 2023, when only €141,000 was frozen. A total of 337 individuals and legal entities were subject to sanctions.
The total number of encumbrances on real estate has decreased.
The mass freezing of accounts has been accompanied by a decrease in the number of encumbrances on real estate without a court decision. In 2024, these measures were applied to 5,293 properties with a total debt of €442 million. For comparison, 5,841 properties were subject to sanctions in 2023, with a total value of €647.6 million. This may indicate a shift toward a more targeted and aggressive approach to debt collection, primarily through bank assets.
For now, football clubs are safe.
They have temporarily avoided tough sanctions. Earlier, the tax service warned of the possibility of imposing memoranda and freezing the accounts of debt-ridden football teams. However, the clubs avoided sanctions by entering a debt restructuring program and starting to make payments according to new schedules.
There has been a boom in criminal cases and fines.
Against the backdrop of tighter controls, the tax authorities have increased their judicial activity. In 2024 alone, 789 new criminal cases were filed for tax evasion or failure to file tax returns. Currently, there are 1,280 active cases, which have resulted in the collection of €10.9 million thus far. Out-of-court settlements brought in an additional €133,000, while court fines amounted to €157,000.
The total debt is close to €4 billion.
Cyprus's total tax debt continues to grow and is approaching a critical level. As of December 2024, the total tax debt was €3.93 billion, €2.59 billion of which is subject to immediate collection. Active measures, such as seizure of accounts, court action, and restructuring, are already in place for €729.8 million.
The tax service emphasizes that it will continue to use all available measures to ensure compliance with tax legislation. Citizens and organizations are advised to check their obligations through their personal accounts and file their returns in a timely manner.