The Tax Department has launched inspections targeting television personalities, media figures and individuals with strong presence on social media platforms, as part of efforts to tackle tax evasion and strengthen tax compliance.
According to information obtained by Politis, the audits focus on payments received for advertising services on Instagram, Facebook, TikTok and YouTube, including both cash payments and benefits in kind.
The checks examine the declared activities of those under investigation against their income tax and VAT filings, with the aim of ensuring that the correct amount of tax has been paid for all services provided.
At the same time, the Tax Department has carried out detailed reviews linked to luxury weddings, requesting evidence to substantiate declared or undeclared income. Where irregularities were identified, tax liabilities were imposed.
New tools
The department now has additional tools at its disposal following tax reform, aimed at combating tax evasion and tax avoidance while broadening the tax base.
All individuals aged between 25 and 70 are required to submit a tax return, regardless of income level. The Council of Ministers retains the authority to exempt categories of individuals through a decree.
From 1 July 2026, rental payments for properties in Cyprus must be made exclusively through bank transfers, debit or credit cards or other recognised electronic means.
The Tax Commissioner is also empowered to request asset and liability statements covering a six‑year period.
Authorities may further seek information from banks regarding interest credited to individuals, including identity details, tax residence, tax identification numbers and amounts credited or withheld.
Additional measures include the sealing of businesses for failure to submit tax returns, issue proper receipts or settle tax debts. Taxpayers retain the right to challenge such decisions in court.
Provisions also allow for the freezing of company shares in cases of tax debts exceeding €100,000.
Increased revenues
Intensified inspections in recent years have significantly boosted state revenues. According to Tax Department data, tax income reached €8.1bn in 2025, up from €7.4bn in 2024, €6.7bn in 2023 and €6bn in 2022.
