On Thursday 5 December 2025 at 11:07 a.m., Loukas Christodoulou and the party’s four parliamentary candidates walked up the marble steps of the House of Representatives carrying a 187-page document that could change the lives of every Cypriot family with children: the “Family First 2026” bill.
This is the most ambitious pro-family tax reform package ever submitted in Cyprus.
The Core Measures
- Immediate 30 % income-tax reduction for every household with children under 18
- Child benefit increased from €47 to €167 per month per child
- Additional €500 annual education allowance per child (books, tutoring, laptops)
- Marriage loan forgiveness after third child (€15,000 wiped clean)
- 50 % property transfer fee reduction for families buying their first home
Total annual relief for an average family with two children: €3,400–€4,100.
How It Is Fully Funded (no magic money)
- Closing the offshore company tax loophole (currently saves €1.8 billion per year for 12,000 shell companies)
- 15 % windfall tax on banks’ 2024–2025 excess profits
- Ending golden passport-style tax breaks for non-doms
- Luxury property transaction tax increased from 0.2 % to 3 %
Independent economists from the University of Cyprus and the Fiscal Council have already verified the numbers: the package is revenue-positive within three years.
The Political Reaction
Within minutes, the government spokesperson called it “unrealistic”. The finance minister said “it will bankrupt the state”. Loukas replied the same day:
“They said the same about ending the troika in Greece. They said the same about free healthcare in Portugal. Families are bankrupt right now. This bill ends that.”
First reading is scheduled for 15 January 2026. Public consultation is open until 31 December 2025 at familiefirst.cy where every citizen can read the full text and submit amendments.
The message is clear: the era of families paying for the greed of the few is over.