Cyprus tax-to-GDP ratio rises to 36.3 per cent in 2025, Eurostat data shows

Nicosia, Cyprus. The ratio of tax and social contribution revenue to GDP in Cyprus reached 36.3 per cent in 2025, up from 36 per cent the year before, according to Eurostat. The agency reported that revenues from these sources grew in most European Union member states.

Cyprus against the EU and euro area

Cyprus stayed under the EU average, which moved up to 40.7 per cent in 2025 from 40.2 per cent in 2024. In the euro area the rise was steeper, with the ratio reaching 41.3 per cent, against 40.7 per cent a year earlier. The increase in Cyprus indicated that tax and social contribution revenues grew relative to the size of the economy.

Related: Cyprus Household Debt at €20 Billion and Corporate Debt at €41.7 Billion, Central Bank Data Show

RelatedCyprus Household Debt at €20 Billion and Corporate Debt at €41.7 Billion, Central Bank Data Show

What the indicator measures

The tax-to-GDP ratio expresses the combined income governments receive from taxes and net social contributions as a share of gross domestic product (GDP). It gives a sense of how large tax revenues are relative to an economy.

EU-wide revenue

Eurostat reported that revenue from taxes and social contributions in the EU rose by €401 billion in 2025 compared with the previous year, reaching €7.68 trillion. The ratio went up in 19 member states over the same period.

Differences between member states

Large gaps persisted across the bloc, reflecting differences in national tax systems, social contribution arrangements and the size of government revenue relative to economic output.

France had the highest ratio in the EU at 46 per cent, followed by Belgium at 44.7 per cent, Denmark at 44.3 per cent and Austria at 43.9 per cent.

Ireland had the lowest ratio at 22.7 per cent. Romania followed at 29.3 per cent, Malta at 30.3 per cent and Bulgaria at 30.6 per cent.