Cyprus Achieves Fiscal Surplus Of €939.2 Million In 2025

Fiscal Overview And Economic Implications

Cyprus recorded a fiscal surplus of €939.2 million in 2025, according to preliminary data from the Cyprus Statistical Service (Cystat). The surplus corresponds to 2.6% of GDP, compared with 4.1% or €1.44 billion recorded in 2024. Although the surplus narrowed compared with the previous year, the budget balance remained positive as government revenue continued to expand.

Robust Revenue Growth Drives Fiscal Performance

Total government revenue increased by €864.8 million to €15.62 billion, representing a 5.9% rise compared with 2024. Key contributors included income and wealth taxes, which increased by 9.0% to €4.15 billion. Social contributions also rose significantly, adding €358.7 million and reaching €4.88 billion.

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Sectoral Contributions And Shifts In Tax Revenues

Property income recorded one of the largest increases, rising by 30.4% to €160.3 million. Taxes on production and imports remained broadly stable at €4.70 billion. Within this category, net VAT revenue declined slightly by 1.7%, falling from €3.17 billion to €3.12 billion.

Dynamic Revenue Streams And Investments

Revenue from the sale of goods and services increased by 17.9% to €1.05 billion. Current transfers also grew by 7.1%, reaching €421.1 million. At the same time, capital transfers declined by 22.0%, falling to €262.9 million from €337.0 million in the previous year.

Escalated Government Expenditures

Total government expenditure rose by 10.3% to €14.68 billion. Employee compensation, including civil servant pensions and social contributions, increased by 6.5% to €4.13 billion. Social benefits rose by 7.2%, reaching €5.69 billion compared with €5.30 billion in 2024. Intermediate consumption increased by 9.3% to €1.60 billion, while current transfers rose by €77.8 million to €920.2 million.

Accelerated Capital Investments Amid Cautious Debt Management

Capital spending recorded a notable increase of 46.6%, reaching €1.77 billion. Gross capital formation rose by 25.1% to €1.21 billion, while other capital expenditure more than doubled, increasing from €240.4 million to €559.9 million. Interest payments on government debt declined by 6.1% to €418.7 million, and subsidy allocations fell by 11.4% to €151.8 million.

Data Reporting Challenges And Forward Outlook

Cystat noted that estimates were used for certain government sectors, particularly local authorities, due to incomplete data submissions. These reporting gaps highlight the importance of improving data collection across public administration as fiscal reporting continues to evolve.

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Cyprus Strengthens Its Case As A European Chess Hub After FIDE President’s Visit

by THEFUTURE.TEAM

October 20, 2026

Cyprus is sharpening its position on the European chess map, with the island’s rising profile now drawing attention at the highest levels of the sport.

Fide Leadership Backs Cyprus’ Chess Ambitions

International Chess Federation (FIDE) president Timur Turlov, who also leads Freedom Holding Corp and Freedom24, met President Nikos Christodoulides at the Presidential Palace in Nicosia on Monday to discuss the future of chess development in Cyprus. The talks centered on the island’s growing importance in European chess and the momentum built since Freedom became general partner of the Cyprus Chess Federation in 2023.

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“In three years, Cyprus has become one of Europe’s chess hubs, and we want to keep building on that,” Turlov said. “It was important for us to present our plans for chess on the island to the President, and we are grateful for his time and attention to the game.”

A Broader Strategy For Growth

Turlov was elected FIDE president on September 26 at the federation’s congress in Samarkand. His 2027–2030 programme calls for roughly €30 million in funding over four years to support global chess development, including an annual development fund of €6.2 million, nearly four times the current budget.

The proposed funding is designed to expand competition opportunities, strengthen youth development, improve chess education, support coaches and arbiters, accelerate digital tools, and promote women’s chess.

Cyprus Has Become A Proven Host For Major Events

Since Freedom became the federation’s general partner in 2023, Cyprus has hosted 26 tournaments, including stages of the FIDE Women’s World Grand Prix in Nicosia in 2023 and 2025. The island also welcomed the 2026 Candidates Tournament, which featured a €1 million prize fund and brought top international players to Cap St Georges Hotel and Resort.

For Cyprus, that event carried symbolic weight. It was the first time in the country’s chess history that the world’s leading contenders had competed on the island, underscoring its emergence as a credible destination for elite international chess.

Building A Pipeline For The Next Generation

The local ecosystem is also expanding at the grassroots level. The Freedom24 Chess Academy opened in Limassol on March 1, 2025, under the leadership of International Master Artem Sadovsky. Its mission is to develop competitive players capable of representing Cyprus on the international stage.

According to the Cyprus Chess Federation, around 2,000 people in Cyprus now play chess actively, most of them children. That matters: a sustainable chess economy, like any successful sports ecosystem, depends not only on marquee tournaments but also on a steady pipeline of young talent, coaching infrastructure and institutional support.

As Cyprus continues to invest in the game, it is increasingly positioning itself not just as a host nation, but as a serious contributor to the future of European chess.

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