Breaking news

Cyprus Achieves Fiscal Surplus Of €939.2 Million In 2025

by THEFUTURE.TEAM

March 4, 2026

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.

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

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.

The Future Forbes Realty Global Properties

Cyprus Introduces €200 Million Support Measures To Cut Energy And Food Costs

by THEFUTURE.TEAM

March 27, 2026

Comprehensive Relief Measures For A Resilient Economy

The government of Cyprus introduced support measures exceeding €200 million to reduce household expenses and support key sectors. The package targets energy costs, food prices, tourism and agriculture. Measures come in response to rising costs and supply pressures. Implementation begins in April and May 2026.

Energy And Fiscal Reforms

The government will reduce VAT on electricity for households to 5% from May 1, 2026, to March 31, 2027. The measure is expected to lower energy bills. Special consumption tax on transport fuels will decrease by 8.33 cents per liter between April and June 2026. Policy targets fuel-related costs.

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

Broadening The Zero VAT Initiative

Authorities will expand the list of products with zero VAT. Meat, poultry and fish will be included from April 1 to September 30, 2026. Existing zero-VAT categories already include fruits and vegetables. The government also decided not to introduce a green tax on fuels, avoiding an additional cost of about 9 cents per liter.

Sector-Specific Supports

The package includes a 30% wage subsidy for hotel employees for April 2026. Measure supports tourism businesses during the early season. Support for airlines aims to maintain connectivity with key destinations. The agriculture sector will receive subsidies covering 15% of costs for fertilizers and supplies in April and May.

Economic Stability, National Security

President Nikos Christodoulidis said economic stability remains a priority for the government. He noted that growth, fiscal balance and inflation trends support current policy decisions. Statement links economic policy with broader national priorities. The government continues to monitor external risks.

Ensuring Consumer Protection

Furthermore, the government has mandated rigorous market oversight and intensified inspections to prevent exploitative pricing during this period of economic intervention. This proactive stance ensures that the benefits of the measures directly serve the citizens without unintended inflationary impacts.