Expatriates living in Cyprus are likely to be faced with higher taxes as the country aims to save €975 million (£779 million) in the coming four years.
It needs to reduce a deficit gap which has occurred and it is thought that president Demetris Christofias is looking towards higher taxes as opposed to spending cuts in order to achieve it.
An increase will come to both direct and indirect taxes it is thought with VAT, income tax and local property taxes all to be affected.
A spokesperson for Blevins Franks said: "Expats in Cyprus have benefited from a relatively benign tax regime so far. However times are changing and it is time to pay more attention to tax planning,’ the report concludes."
Tax in Cyprus is still at a relatively favourable rate when compared to other favourite expat destinations, such as France and Spain and Portugal.
Property wealth will also be investigated by the Cyprus Inland Revenue department, which has requested information on properties worth more than €500,000 from municipal authorities.