Breaking news

Cyprus Q3 2025 Fiscal Review: Surplus Shrinks Amid Revenue Gains And Rising Expenditure

by THEFUTURE.TEAM

January 23, 2026

Government Surplus And Revenue Overview

Cyprus reported a general government surplus of €653.6 million in the third quarter of 2025, marking a decrease from the €871.0 million surplus recorded during the same period in 2024. This figure, derived from preliminary results released by Cystat, encapsulates fiscal performance for the July–September 2025 period.

Incremental Revenue Performance

Notwithstanding the lower surplus, total government revenue increased by €104.2 million (2.6%), reaching €4.10 billion compared to €3.99 billion in the corresponding quarter of 2024. The growth was driven by several key factors:

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Social contributions surged by €62.5 million (5.7%), up to €1.15 billion.
Taxes on income and wealth experienced a modest increase of €10.9 million (0.8%), totalling €1.30 billion.
Taxes on production and imports climbed by €7.1 million (0.6%), with net VAT revenue alone rising by €40.2 million (4.8%) to €886.4 million.
Additional gains were seen in property income receivable, which increased by €3.0 million (13.5%), and capital transfers, which grew by €6.0 million to €10.8 million.
Furthermore, revenue from the sale of goods and services advanced by €15.1 million (6.1%) to reach €260.9 million.

Escalating Expenditure Patterns

The fiscal report also reveals notable increases in public spending. Total government expenditure rose by €321.5 million (10.3%) to €3.45 billion in Q3 2025, up from €3.12 billion in the previous year. This expansion in spending is detailed as follows:

Social transfers increased by €97.8 million (7.9%) to €1.33 billion.
Employee compensation, which includes imputed social contributions and pensions for civil servants, rose by €50.5 million (5.6%) to €955.6 million.
Intermediate consumption saw a slight rise of €4.5 million (1.2%) to €382.0 million.
The capital account experienced a substantial upswing, jumping by €223.7 million (84.2%) to €489.3 million, reflecting enhanced capital formation and transfers.
Conversely, property income payable dropped by €26.1 million (25.7%) to €75.3 million, while other current expenditures and subsidies declined by €16.1 million (8.6%) and €12.6 million (25.3%) respectively.

Implications For Fiscal Policy

The mixed performance in key fiscal indicators highlights a nuanced picture. The increased revenue streams underscore a growing tax base and improved collection efficiency, yet the lower surplus and rising expenditures suggest a need for balanced fiscal strategies moving forward. Policymakers must address the challenges posed by escalating public spending while leveraging the gains in revenue to sustain long-term economic stability.

Conclusion

The Q3 2025 fiscal figures for Cyprus provide valuable insights into the country’s economic trajectory, offering both promising trends and critical areas for intervention. As decision-makers refine their fiscal policies, the interplay between revenue growth and expenditure management will remain central to Cyprus’s broader economic agenda.

The Future Forbes Realty Global Properties

Cyprus Launches State Program To Restore Abandoned Vineyards And Farmland

by THEFUTURE.TEAM

March 18, 2026

Introduction And Strategic Objective

The state has unveiled a comprehensive aid measure designed to restore abandoned vineyards and other agricultural lands, addressing both ecological degradation and the rising threat of catastrophic wildfires. Announced by Commissioner Stella Michailidou, the initiative targets the reduction of combustible biomass that exacerbates fire risks, while simultaneously aiming to enhance the overall performance and sustainability of agricultural enterprises.

Implementation And Funding Mechanism

The Department of Agriculture at the Ministry of Agriculture, Rural Development And Environment, accessible at Ministry Of Agriculture, is responsible for implementing the measure. Funding is administered by the Cypriot Agricultural Payments Organization, ensuring that direct grants cover a range of essential expenses. These include land clearing, soil preparation, nutrient management, and the procurement of plant material needed for replanting and rejuvenation efforts.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Enhancing Agricultural Sustainability

This initiative not only serves to mitigate wildfire risks by reducing flammable material but also works to improve the operational viability of farms. By promoting the restoration of vineyards with indigenous grape varieties and integrating tree crops adapted to local climatic conditions, the measure aims to modernize agricultural practices while preserving traditional methods. The installation of early growth supports, tailored to foster robust crop development, underlines the commitment to long‐term agricultural resilience.

Cultural Preservation And Climate Adaptation

Beyond its immediate environmental benefits, the measure emphasizes the preservation of Cyprus’s cultural and natural heritage. By restoring the vitality of long-standing agricultural landscapes, it supports the conservation of local traditions and biodiversity. Furthermore, the initiative aligns with broader efforts to adapt to climate change, mitigating its impact and bolstering the region’s overall climatic resilience.

Scope And Eligibility

The scheme specifically targets very small, small, and medium enterprises engaged in primary agricultural production, as defined under European Commission Regulation (EU) 2022/2472. Eligible projects include the mechanical combating of weeds without herbicides and the maintenance of clean farmlands, part of voluntary agro-environmental commitments. Enterprises facing operational challenges or those under recovery orders for previous state aid are excluded from participating in this measure.