It Will Be Easier to Recover Money: New Tax Debt Restructuring Launched in Northern Cyprus

A decision on the restructuring of tax debts for 2024 and previous periods, as well as debts owed to local authorities, has come into force in Northern Cyprus.

Individuals and companies are being offered substantial discounts on penalties and late-payment interest when settling their debts. Applications to participate in the programme can be submitted until 12 October 2026.

For debts from 2023 and earlier, a one-off payment will result in 90% of penalties being written off and all late-payment charges being cancelled. For debts from 2024, 50% of penalties and interest will be written off.

Instalment payments are also available: 20% of the amount must be paid immediately, with the remainder paid in six equal instalments. If the restructuring terms are breached, the right to the benefits will be lost.