Nicosia, Cyprus. Cyprus recorded a general government surplus of €567.10 million in the first quarter of 2026, according to preliminary data from the Cyprus Statistical Service (Cystat). Public revenue increased despite government expenditure rising at a faster rate.
Quarterly budget position
The surplus for January to March was lower than the €600.60 million recorded in the first quarter of 2025.
Eurostat reported that Cyprus was among the few European Union countries to register a budget surplus, with its seasonally adjusted surplus standing at 0.4 per cent of gross domestic product in the first quarter of 2026.
Revenue growth
Total government revenue rose by 5.8 per cent year on year to €3.82 billion, compared with €3.61 billion in the corresponding quarter of 2025.
The increase was driven mainly by higher social contributions, income taxes, and taxes on production and imports.
Social contribution revenue increased by 8.2 per cent to €1.28 billion, from €1.18 billion a year earlier. Revenue from taxes on income and wealth rose by 10.9 per cent to €1.09 billion, compared with €985.90 million in the first quarter of 2025.
Taxes on production and imports increased by 3.4 per cent to €1.13 billion, from €1.09 billion in the same period last year.
VAT and capital transfers
Net value-added tax revenue rose by 5.5 per cent to €764.30 million, compared with €724.20 million in the first quarter of 2025.
Capital transfers increased to €5 million from €4.40 million in the corresponding quarter of the previous year.
