Local councils across Cyprus are facing new restrictions and obligations as Parliament steps in to curb runaway increases in waste collection and local property taxes.
While some local authorities had already approved steep rises, up to 85% for certain apartments, Parliament has now capped the hikes at 14% for waste collection and 10% for local property taxes for the 2025 fiscal year.
Local property taxes & waste collection fees
Originally, the government tabled legislation that would have allowed councils to increase these levies by as much as 35% annually, compared to the amounts imposed the previous year. This could have translated to homeowners paying up to 2.5 times more for waste collection and 3.5 times more for local property taxes than they did in 2024.
Some councils even pushed for unlimited increases, but these efforts were halted following parliamentary scrutiny.
Legal and ethical constraints
Parliament’s decision followed legal guidance cautioning against such steep hikes. A letter from the Law Office highlighted key principles: proportionality, transparency, and the need to avoid retroactive or surprise tax burdens on homeowners. These principles underpinned the decision to impose a firm ceiling on increases.
What homeowners can expect
While homeowners have been spared the more extreme increases, they will still see their bills rise. Waste collection fees are set to increase by up to 14%, and local property taxes by up to 10%, compared to 2024. There has been no indication that services will improve or even be maintained at last year’s levels despite the higher charges.
Further charges on homeowners
On top of these capped increases, further financial burdens may soon fall on homeowners. New legislation aims to give District Local Government Organisations (DLGOs) the power to impose additional charges on councils for a variety of environmental services, including:
- Green point operations
- Product reuse and repair centres
- Community composting units
- Green kiosks
- Recycling corners
- Specific waste collection points
These costs are to be distributed according to each local authority’s population; an administrative burden that will almost certainly be passed on to homeowners.
Who pays the bill?
Under the new legislation, local authorities will no longer be required to contribute 60% of the fees collected by DLGOs. Instead, the state will cover the €12 million required to fund these initiatives, an amount it intends to recover through general taxation.
Summary
Homeowners are being asked to shoulder a growing financial burden in the name of environmental responsibility and municipal funding. While Parliament has blocked the most excessive proposals, local property taxes and waste collection fees are still set to rise significantly in 2025. And with new levies and services being planned, the pressure on household budgets looks unlikely to ease anytime soon.
Stay informed, check your local council updates, and be prepared for these changes to take effect in the coming months.
