The newly elected House of Representatives is set to bring order to the taxi sector, as the Licensing Authority pushes ahead with a comprehensive reform that reshapes how the industry operates. At the heart of the overhaul is the creation of a single state-run digital platform, alongside the gradual issuance of new licences and a fundamental shift in how those licences are treated.
The framework is currently under consultation and is expected to be submitted to parliament by the end of June, according to the chair of the Licensing Authority.
Full oversight
The cornerstone of the reform is a mandatory state platform in which all taxi licence holders will be required to register. For the first time, the competent authorities will have a complete picture of the market, with systematic recording of all relevant data. The aim is to enhance transparency and curb the shadow economy, which remains widespread in the sector.
Particular emphasis is placed on journeys that currently operate “under the radar”. As Licensing Authority chair Despina Amerikanou told Politis, whenever a taxi operates outside the district in which it is licensed, the driver will need to declare this on the platform. This will allow continuous monitoring of activity and avoid gaps in oversight.
The issue is directly linked to illegal operations and has repeatedly surfaced in public debate. In February, the competent minister said that “70 per cent of piracy cases are carried out by professional drivers”.
A crucial element of the reform is a change in the philosophy governing taxi licences. The new model moves away from treating licences as a private “investment”. Licences issued from now on will belong to the state, preventing the emergence of cartel-like conditions.
Asked about the rollout, Amerikanou said authorities are considering a gradual release of new licences to increase supply without sharply disrupting the market. She stressed, however, that existing licences will not be affected.
Although officials have not specified how many new licences will be issued, previously presented data remains indicative of the challenge. Cyprus has just 38 active taxi licences per 100,000 inhabitants, compared with a European average of 114. To meet demand by 2030, estimates suggest the market will need at least 3,200 to 5,600 additional licences.
Structural problems
The need for reform stems from long-standing problems in the sector. The taxi market has been effectively frozen for more than two decades, as no new licences have been issued since 2002. This created a closed system with limited access for new professionals.
Over time, licences acquired significant financial value and often function as investment assets. According to industry information, resale prices can reach up to €100,000, while about 48.6 per cent of licences are rented out to drivers.
Operating costs are already high. Annual licence rental ranges from €3,000 to €18,000, while fuel costs can reach up to €24,000 per year. Insurance, maintenance, taxes and other expenses further add to the burden, forcing many drivers into demanding working conditions, with daily shifts of 10 to 12 hours.
At the same time, supply fails to meet demand. Studies by Deloitte for Bolt and the Licensing Authority, in cooperation with Frederick University, show that during peak hours – particularly in urban centres such as Limassol – taxi availability is limited.
Illegal operations remain a growing concern. In 2024, authorities imposed 108 administrative fines totalling €141,000. In 2025, cases surged to 306, with fines exceeding €540,000.
Meanwhile, a bill tabled by MP Alekos Tryfonidis, due to be debated in plenary on 16 April, provides for tougher penalties for illegal passenger transport, including prison sentences of up to 24 months or fines of up to €10,000.