Family support measures announced through tax relief and increased child benefits

New measures have been announced to provide financial support to families through tax relief and increased child benefits.

In one jurisdiction, approximately 87,000 families with three children and an annual income up to €20,000 will receive zero income tax starting from the 2027 tax year. Additionally, the tax-free threshold for these families will increase by €11,000 to €25,364. For larger families, the birth grant will increase by €1,000 for the fourth and every subsequent child, with retroactive effect for children born from January 2025.

In Cyprus, President Nikos Christodoulides announced an expansion of the Child Benefit program by raising income eligibility thresholds. The maximum income limits for families with three and four dependent children have been set at €90,000 and €100,000, respectively. This reform is expected to benefit approximately 17,000 additional families and over 23,000 children. Furthermore, starting in 2025, families with five or more dependent children will face no income criteria for these benefits.