A new landfill tax will add €10.60 to annual household bin charges by 2027, but families who recycle properly under the Pay As You Throw system will pay just €6.76 extra, the government said.
The Council of Ministers approved the landfill tax today, adopting a proposal by Agriculture Minister Maria Panagiotou to meet EU requirements that Cyprus cut landfill waste to 10% of total municipal waste by 2035.
Cyprus negotiated the tax down from an initial EU proposal of €35 per tonne to €10 per tonne after consultations in late 2024. The rate will rise by €5 annually from 2028, capping at €70 per tonne.
Without the Pay As You Throw recycling system, household costs would balloon – reaching €26.50 extra in 2030 and €53 in 2035. But with proper recycling and reduced landfill use, the 2035 cost stays at €6.76, or falls to just €3.50 if Cyprus hits its 10% landfill target.
€48 million returns to municipalities
The reform is fiscally neutral – every euro collected returns to municipalities and communities to fund the transition.
Local authorities will receive €48 million in total: €23 million from the Recovery and Resilience Plan and €25 million from the “THALIA” Cohesion Policy Programme.
The money will pay for home composters and recycling bins, modern equipment like compactors and shredders, and contracts for separate waste collection.
Distribution of the €48 million begins within 2026, tied to municipalities’ progress implementing their action plans.
Outstanding issues include submission of action plans and completion of infrastructure upgrades at waste management facilities. The state has commissioned a special study to ensure upgrades are done properly, avoiding past mistakes like those at Pentakomo.
Tax timeline
From when the regulations take effect until 31 December 2027, the rate is €10 per tonne.
From 1 January 2028, it rises by €5 per tonne annually until hitting the €70 cap.
The gradual increase gives local authorities and citizens time to adjust without sudden shocks as Cyprus works towards EU compliance.
“Today’s development is not simply a technical regulation,” Panagiotou said. “It is a decisive step towards a new era in waste management: volume reduction, recycling enhancement, environmental protection and – above all – fair transition without burden on citizens.”
She stressed the government’s goal is clear: these fees will not be passed on to citizens. The €23 million from landfill tax approval is a critical milestone in the Recovery and Resilience Plan, she added.
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