Cyprus is set to overhaul its taxi licensing framework for the first time in more than 20 years, with a proposed amendment to the Road Transport Regulation Law aiming to tackle illegal operators, end speculative licence trading and bring booking apps under state control.
The reform, promoted by the Licensing Authority, comes after three years of mounting public pressure. Professional drivers staged a strike in March 2026 over operating costs and annual licence rental fees, while tourists repeatedly complained of overcharging at Larnaca and Paphos airports, and shortages of vehicles during peak hours fuelled public frustration alongside debate over the legal status of digital booking platforms.
Cyprus currently has 1,588 active urban taxi licences and 212 rural taxi licences. No new licences have been issued since 2002. The Licensing Authority estimates that under the new framework the total number of licences could exceed 3,200 within the coming years and reach up to 5,600.
The bill draws heavily on a 2025 study commissioned from Frederick University by the Licensing Authority, and promises improvements for both drivers and passengers.
For drivers
War on piracy
Illegal passenger transport — described by drivers as the industry’s gravest problem — has surged sharply. Cases rose from 108 in 2024 to 306 in 2025, with fines imposed exceeding €540,000. The bill raises administrative fines to €750 for the driver, €1,500 for the vehicle owner and €1,500 for each intermediary, and gives courts the power to impose temporary vehicle bans or suspend the operation of illegal premises.
End to the licence freeze
A new Article 9 introduces a transparent formula linking the number of licences per base to the permanent population and tourist overnight stays, to be reviewed every three years. A 10% social quota is established for parents of large families, families with three children and parents of children with disabilities.
Licences return to the state
Taxi licences had effectively become private assets, with resale values on the open market reaching up to €100,000, and 48.6% of licences being leased out. New licences will no longer be transferable, either during the holder’s lifetime or upon death, protecting drivers from prohibitive rental costs.
Legalising seven-to-nine seat vehicles
The bill introduces a “special hire vehicle” category — covering vans and Vito-type vehicles — for tourist groups and hotels. Bookings must be made in advance in writing or by telephone, and approaching passengers on the street or at taxi ranks is explicitly prohibited.
Platform accountability
A dedicated registry will be established at the Department of Road Transport for digital platforms such as Bolt. Each intermediary will be required to appoint a compliance officer and work exclusively with properly licensed taxis. Failure to appoint a compliance officer will attract administrative fines of up to €50,000.
For passengers and tourists
Ending the wait in cities
The Frederick University study found a sharp geographical imbalance in taxi availability. Nicosia has just 472 taxis for 330,000 residents — a ratio of one taxi per 700 people — while Limassol has 487 taxis for 258,000 residents, a ratio of one per 530. Some 71% of students said they were unable to find a taxi at night. The Licensing Authority estimates the new formula will lead to between 3,200 and 5,600 additional licences being issued by 2030.
Greener, newer vehicles
All vehicles registered as taxis for the first time will be required to be new, meeting Euro VI emissions standards or fully electric, improving comfort and safety for passengers.
Safer journeys
Cracking down on illegal operators directly protects passengers, who previously risked travelling with drivers operating without professional insurance, criminal record checks or vehicle roadworthiness inspections. The new platform registry, electronic pre-booking records and intermediary liability are designed to guarantee that vehicles are licensed, insured and inspected.
Airport overcharging blocked
For pick-ups at airports, ports or checkpoints, a pre-booking receipt showing passenger details, flight information and the agreed fare will be mandatory — a direct response to longstanding tourist complaints about price gouging.
Regulated apps
Registration in the intermediary registry, appointment of a compliance officer, a list of licensed vehicles and the display of a registration number in advertising will be required of booking apps. Passengers using apps will have greater assurance that the provider is operating within a regulated framework and is subject to oversight.
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