Cyprus government surplus reaches €1.59 billion in first eight months of 2026
Cyprus recorded a general government surplus of €1.59 billion, or 4.1 per cent of GDP, in January–August 2026 as revenue grew faster than expenditure.
Nicosia, Cyprus. Cyprus recorded a general government surplus of €1.59 billion in the first eight months of 2026, according to preliminary figures from the Cyprus Statistical Service (Cystat). The surplus was equivalent to 4.1 per cent of GDP, up from €1.27 billion, or 3.5 per cent of GDP, in the corresponding period of 2025.
Revenue growth outpaces expenditure
The improvement came as government revenue increased considerably faster than expenditure between January and August 2026.
Total government revenue rose by €615.80 million, or 6 per cent, to €10.84 billion, from €10.23 billion in the first eight months of 2025.
Tax receipts and social contributions rise
Revenue from taxes on income and wealth increased by €382.40 million, or 14.2 per cent, to €3.08 billion, compared with €2.70 billion a year earlier.
Social contributions rose by €218.80 million, or 7 per cent, to €3.36 billion from €3.14 billion.
Taxes on production and imports increased by €252.90 million, or 8.2 per cent, to €3.34 billion, compared with €3.09 billion in the same period of 2025.
Within this category, net VAT revenue rose by €300.50 million, or 14.7 per cent, to €2.35 billion, compared with €2.04 billion a year earlier.
Capital transfers decline
The increase in tax revenues was partly offset by declines in several other sources of government income.
Capital transfers fell by €101.70 million to €89.90 million, from €191.60 million in the first eight months of 2025.
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