Nicosia, Cyprus. An ECB household survey for 2023 found that Cyprus households had higher average net wealth than many euro area counterparts but lower median incomes, with lower-income, middle-income and younger households facing limited ability to save.
Income and wealth data
Recent opinion surveys have identified affordability as a major concern for households in Cyprus, amid daily cost-of-living pressures and rising housing costs.
Prices and costs have accelerated since February 2026, largely because of the impact of the war with Iran, intensifying affordability pressures in Cyprus and other countries.
The European Central Bank’s Household Finance and Consumption Survey for 2023 provides data on household net wealth, income and expenditure across euro area member states, as well as Hungary and the Czech Republic.
The survey found that the median annual gross income of Cyprus households was €30,900 in 2023, compared with €37,100 for euro area households.
Lower-income households
The bottom 20 per cent of Cyprus households by income experienced difficulties meeting regular expenses, including debt-servicing payments, and had limited capacity to save, according to the survey.
Their median annual gross income was estimated at €10,300 in 2023. Only 9.8 per cent were assessed as having the ability to save.
The median debt-service-to-income ratio for this group was 56.7 per cent, compared with 19.2 per cent for comparable lower-income households in the euro area.
Middle-income and younger households
The middle-income quintile in Cyprus had a median gross annual income of €29,700 in 2023, 20 per cent below the corresponding euro area average.
After regular expenses, 15.1 per cent of middle-income Cyprus households had the ability to save, compared with 42.5 per cent of comparable euro area households.
Households headed by people aged 16 to 34 recorded median annual gross income of €24,000, more than 30 per cent below that of corresponding households in the euro area. The survey estimated that 18.2 per cent of these younger households could save, compared with around 50 per cent in the euro area.
Government measures
Although the survey data relate to 2023, increases in household real incomes over the past two years and inflation’s effect on real debt have not eased affordability pressures for many families or improved their ability to save.
Since early 2025, the Cyprus government has reduced taxes and provided subsidies aimed at making living costs more affordable. It has also said it will introduce further measures and social security reforms over the next 18 months to address affordability and housing pressures.
