In 2024, Cyprus has seen several significant legal changes across various domains:

1. Citizenship by Residency: Changes have been made to the conditions for acquiring Cyprus citizenship. The "fast track" route now allows for citizenship after 3 or 4 years of legal residence, reduced from the previous 7 years, given the applicant has a Greek language certificate and meets other criteria such as good character and sufficient funds.

2. Tax and Transfer Pricing: New transfer pricing documentation requirements are in effect, aligning with OECD guidelines. The threshold for preparing a local file for tax purposes has increased for different categories of related party transactions. Additionally, the Special Defence Contribution rate on interest has been reduced from 30% to 17%, impacting both companies and individuals.

3. Social Insurance Contributions: Contributions to the Social Insurance Fund have increased by 0.5% for both employers and employees, with self-employed contributions rising from 15.6% to 16.6%.

4. Green Taxes and Environmental Policies: As part of the EU’s Carbon Border Adjustment Mechanism (CBAM), Cyprus is expected to introduce several environmental taxes to address air and water pollution, climate change, and promote a circular economy.

5. Company Law and the EU Mobility Directive: Cyprus is set to amend its Companies Law to incorporate the EU Mobility Directive, which harmonizes rules for cross-border mergers, conversions, and divisions of companies within the EU. This directive also includes enhanced scrutiny by authorities to prevent abusive or fraudulent reorganizations.

6. Reduced Penalties for Late Annual Reports: The financial penalty for late submission of annual reports has been significantly reduced from €500 to €150.

These changes reflect Cyprus's efforts to streamline legal processes, enhance tax compliance, support environmental sustainability, and align with broader EU regulations.