On January 29, the Head of the Republic of Cyprus addressed the people with his keynote speech. During his 45-minute speech, Nikos Christodoulides spoke about the government’s plans for 2025, touching upon tax reform, digitalization, defense and migration. What changes should the president expect in the coming year?

INFRASTRUCTURE

 

Important infrastructure projects worth a total of 1.3 billion euros will be launched in 2025.

 

The next phase of the construction of the 120 million euro ring road will be launched in Nicosia and preparations for the laying of the 107 million euro Akaki—Astromeritis highway will be completed.

 

Limassol can count on the launch of traffic relief projects worth 250 million euros, including the first stage of the northern bypass road and the completion of studies for the second stage (to the village of Saittas) of the Limassol—Troodos expressway.

 

In Larnaca, work will begin on the port and marina, as well as on the industrial port of Vasiliko worth 350 million euros.

 

In Paphos, it is planned to complete two stages of the construction of the Paphos — Polis expressway worth 300 million euros and expand the port of Latchi at a cost of 50 million euros.

 

Various infrastructure projects estimated at 60 million euros will be launched in the free territories of Famagusta, as well as the first phase of the Liopetri River estuary reconstruction project will be completed.

 

taxes

 

The president announced a “reduction in the tax burden for businesses.” This, in his opinion, will help to increase competitiveness and increase exports.

 

The head of state promised to raise the income tax-free minimum for individuals (now it is 19,500 euros) in order to support the middle class.

 

A public debate on tax reform will begin in February 2025.

 

The authorities also intend to carry out pension reform.

 

investment

 

A center will be created to serve foreign investors, which will help speed up the licensing process for strategic projects.

 

For more information, see the article “Europe—Cyprus” “Cyprus is developing a new strategy for attracting foreign investment”

 

HOUSING POLICY

 

A new plan for the sale of building plots at a price of 25% of their cadastral value and an updated housing purchase plan for young people under the age of 41 will be introduced, with subsidies reaching 50,000 euros.

 

Licenses for the construction of one or two houses can be obtained within 40 days, and multi—apartment buildings (up to 20 apartments) – within 80 days.

 

education

 

The Ministry of Education will introduce a new teacher assessment system, increase the number of schools where students can stay all day, launch a pilot project to create a technical gymnasium, introduce a vocational guidance program from the sixth grade and introduce financial literacy classes in all gymnasium classes.

 

SOCIAL POLICY

 

The system of issuing child allowances will be modernized and the number of families who will be able to receive it will be increased.

 

Another 16,000 children will be eligible for an allowance of up to 80% of the cost of breakfast in school canteens.

 

A program to support the elderly at home and a plan for retraining and employment of recipients of the minimum guaranteed income allowance will be put into effect.

 

DIGITAL TRANSFORMATION

 

In 2025, 60 new electronic services will be introduced, as well as the Digital Citizen system will be improved.

 

The Ministry of Digitalization will modernize the auditing and legal services of the Republic of Cyprus, reform online work in the Central Bank of Cyprus and the Department of Long-term Planning.

 

The online arbitration system will be improved, as well as an administrative appeals court and a national sanctions enforcement unit.

 

Social security payments will be made within 30 days of receiving the applications.

 

The authorities intend to make greater use of the capabilities of artificial intelligence.

 

For more information, see the Europa—Cyprus article “A national committee on artificial intelligence has been established in Cyprus”

 

DEFENSE

 

In 2025, the modernization process of the Andreas Papandreou air Base in Paphos will begin, the Evangelos Florakis naval base in Moni will be expanded and industrial cooperation programs in the field of defense will be launched.

 

The authorities plan to launch a program of voluntary conscription of women for military service, improve the skills of reservists and National Guard soldiers, and expand military cooperation with other countries.

 

The Department of Civil Protection intends to increase the number of shelters where residents of the country can hide during emergencies.

 

ENERGY INDUSTRY

 

The authorities intend to accelerate the process of research and development of gas fields offshore the exclusive economic zone of the Republic of Cyprus. On February 17, the President will travel to Egypt to sign an agreement on the use of gas to be produced at the Cyprus Aphrodite field.

 

In 2025, work will resume at the Vasiliko gas storage terminal.

 

The government will provide grants for the creation of energy storage facilities in enterprises and households.

 

The Ministry of Energy intends to modernize the Photovoltaics for All plan to include proposals for small businesses.

 

The government will introduce new incentives for the development of renewable energy sources.

 

MIGRATION

 

In 2025, the primary reception center for migrants in Purnara will be modernized and a new center in Limni will be built.

 

The integration of legal migrants into Cypriot society will be one of the priorities of the Government’s migration policy.

 

and also

 

In 2025, it is planned to

 

to begin paying compensation to depositors and holders of securities of Bank of Cyprus and the bankrupt Laiki Bank, who suffered as a result of the “haircut” during the banking crisis of 2013

, to announce a tender for the construction of the Paphos marina

To put into effect plans for the digitalization of cultural organizations, the professional rehabilitation of athletes who have received places in the Olympic and Paralympic teams, and the modernization of sports infrastructure.

To combat the drought, increase the number of seawater desalination plants, modernize irrigation systems, use abandoned artesian wells, and allocate funds to create private desalination plants.

to strengthen the fight against undeclared labor

, to introduce a program for the return to the country of Cypriot scientists working abroad

to raise the minimum wage

, buy three helicopters to fight fires

, modernize the work of the police, increasing their level of response in crisis situations

, install fire detection systems in 12 industrial zones and important infrastructure facilities.

complete the preparation program for joining the Schengen area

, join the visa waiver program in the United States

, and develop incentives for the creation of theme parks in the tourism sector

 

Photo by Cyprus News Agency

 

https://evropakipr.com/novosti/prezident-kipra-o-nalogah-cifrovizacii-bezopasnosti-i-migracii-v-2025-godu