This work provides insights into the effect of fire on soil processes in Mediterranean-type ecosystems in Cyprus. Soil samples from mountainous sites that were subjected to a summer wildfire and adjacent control samples were collected. Incubations were used to estimate basal respiration and isolate soil CO2 release of heterotrophic microorganisms from autotrophic root respiration and heterotrophic respiration from litter decomposition. Physicochemical property changes, bacteria community changes using DNA extraction and 16S rRNA gene analysis, and the effects of ash and fresh litter addition were studied to reveal the microbial composition and the post-fire soil function. Laboratory incubation showed that burned soils constantly showed higher microbial respiration rates compared with control unburned areas, even six months after a fire. Adding ash to unburned samples increased microbial respiration, suggesting that increased nutrient availability positively corelates with the increased release of CO2 from fire-affected soil. Elevated temperatures due to the wildfire exerted significant effects on the composition of soil bacterial microbiota. Nevertheless, the wildfire did not affect the alpha-diversity of soil bacteria. New communities of microorganisms are still able to decompose fresh plant material after a fire, but at a slower rate than natural pre-fire populations.