Debt settlement schemes bring in € 747 million for the state
Debt settlement schemes recovered €747 million for the state by allowing debtors to pay reduced tax and social insurance liabilities.Summary
From 2017 to 2025, Cyprus’s Tax Department ran debt‑settlement schemes that let taxpayers and employers repay overdue tax and social‑insurance debts at reduced interest and penalties. The programmes generated €647 million from tax debts and €100 million from social‑insurance contributions, totaling €747 million in state revenue. Roughly 48,000 debtors entered the tax schemes, with 43,000 arrangements still active; after discounts the net tax debt was €618.2 million. Most settlements were single‑payment deals that cut additional charges by 95 %. A separate social‑insurance scheme, launched in May 2025, targets €245 million of overdue contributions and remains open until mid‑2026, attracting strong interest from employers and the self‑employed.
(Source：Latest News In Cyprus)