Cyprus posts €939.2 million fiscal surplus in 2025, down from previous year

Nicosia, Cyprus. Cyprus recorded a general government fiscal surplus of €939.2 million in 2025, according to preliminary results released by the Cyprus Statistical Service (Cystat). The surplus equalled 2.6% of GDP, down from €1.44 billion, or 4.1% of GDP, a year earlier.

Fiscal balance and revenue

Cystat said total revenue for the 12-month period rose by €864.80 million to €15.62 billion, a 5.9% increase from €14.75 billion in 2024. Income and wealth taxes increased 9.0% to €4.15 billion, while social contributions rose by €358.70 million to €4.88 billion.

Property income increased 30.4% to €160.30 million, while taxes on production and imports were €4.70 billion. Within that category, net VAT revenue fell 1.7% to €3.12 billion from €3.17 billion in 2024.

Revenue from the sale of goods and services rose 17.9% to €1.05 billion, and current transfers increased 7.1% to €421.10 million. Capital transfers fell 22.0% to €262.90 million from €337.00 million in the prior year.

Expenditure and compensation of employees

Total expenditure increased 10.3% to €14.68 billion, compared with €13.31 billion in 2024. Compensation of employees, including civil servant pensions and social contributions, rose 6.5% to €4.13 billion.

How do you think the changes in revenue and expenditure will affect Cyprus’s fiscal position in the coming year?