Cyprus reforms taxis and will increase the number of licences almost fourfold

Cyprus’s Ministry of Transport is completing work on a major draft law to reform the taxi sector, which will be submitted to parliament for consideration. The main goal of the changes is to eliminate the shortage of cars during peak hours, reduce the cost of rides and completely eradicate “pirate” transport. Studies have shown that due to high prices and the shortage of cars during rush hours, about 60% of Cyprus residents do not use taxi services at all.

To address the shortage, the authorities plan to issue between 3,200 and 5,600 new licences by 2030, which will increase their total number almost fourfold. At present, the resale price of old licences reaches €100,000, and about half of them are rented out. Because of this, drivers are forced to work 10–12 hours to cover rental costs, which range from €3,000 to €18,000 per year, as well as expensive fuel. The reform is intended to open up the market and reduce the financial burden on drivers.

As part of the reform, the country will create a single national digital platform, where all legal taxi drivers will be required to register. This will make it possible to introduce digital taximeters, make trip accounting transparent and strictly control fares. At the same time, fines for illegal passenger transport will be significantly increased, and cars belonging to “pirates” may be confiscated. Notably, around 70% of violations are currently committed by professional drivers themselves who work without the proper documents.

In addition, the state will introduce incentives and subsidies for the purchase of electric vehicles and low-emission cars in order to modernize the fleet. Mandatory professional development courses will also be organized for taxi drivers. All these measures are designed to make the market open and the service affordable and safe for the public.