Cyprus’ outstanding tax debt rises to €4.64 billion by end-2025

Nicosia, Cyprus. Cyprus’ outstanding tax debt reached €4.64 billion at the end of 2025, up from €3.93 billion a year earlier, according to Tax Department data reported by Philenews.

Immediately collectable tax arrears stood at €3.32 billion, compared with €2.29 billion at the end of December 2024.

Breakdown of collectable debt

Tax arrears outstanding for less than one year totalled €979.4 million, representing 29.5 per cent of immediately collectable debt.

A further €992.6 million, or 29.9 per cent, had remained unpaid for between one and four years. More than €1.32 billion, approximately 40 per cent of immediately collectable debt, related to liabilities outstanding for more than four years.

Debt considered difficult to recover

The Tax Department classified €1.31 billion of total outstanding debt as not immediately recoverable. Excluding this amount, which is considered difficult to collect, leaves immediately collectable debt of €3.32 billion.

The data also showed increased use of enforcement measures to recover unpaid taxes.