Robust Fiscal Performance In Early 2026
Cyprus recorded a general government fiscal surplus of €538.8 million in January 2026, equal to 1.5% of GDP, according to the Cyprus Statistical Service (Cystat). The figure is lower than January 2025, when the surplus reached €569.3 million, or 1.6% of GDP.
Revenue Gains Driven By Income And Wealth Taxes
Total government revenue reached €1.55 billion in January 2026. This represents a 1.0% increase from €1.53 billion recorded a year earlier. Taxes on income and wealth increased by €71.2 million to €657.0 million, up from €585.8 million in January 2025. Capital transfers also increased, rising to €5.2 million from €2.9 million, a 79.3% increase.
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Mixed Trends In Tax Categories
Taxes on production and imports declined by €24.0 million to €363.4 million, down from €387.4 million a year earlier. The decrease represents a 6.2% decline. Net revenue from value-added tax increased by €9.2 million. VAT revenue reached €258.9 million compared with €249.7 million in January 2025, an increase of 3.7%.
Changes In Social Contributions And Property Income
Social contributions declined by €7.8 million to €423.4 million. This represents a decrease of 1.8% compared with January 2025. Property income also declined, falling to €4.9 million from €7.1 million a year earlier. The decrease represents a 31.0% drop.
Changes In Current Transfers And Service Revenues
Current transfers declined by €8.9 million to €12.1 million, compared with €21.0 million in January 2025. This represents a decrease of 42.4%. Revenue from the sale of goods and services also declined. The figure fell to €85.5 million from €101.4 million, a decrease of 15.7%.
Government Spending And Capital Investments
Total government expenditure increased to €1.01 billion in January 2026. The figure represents a 4.7% increase from €967.5 million a year earlier. Intermediate consumption increased by €10.2 million to €83.5 million, representing a 13.9% increase. Social benefits rose by 4.5% to €450.0 million, compared with €430.7 million in January 2025. Current transfers also increased, rising by 30.2% to €93.6 million.
Capital Account And Fiscal Adjustments
The capital account increased to €37.4 million from €33.2 million a year earlier. This represents a 12.7% increase. Gross capital formation increased by €0.6 million, a 2.3% rise. Other capital expenditure increased by €3.6 million to €10.4 million, representing a 52.9% increase. Compensation of employees, interest payments and subsidies declined during the period.
Data Reporting
Cystat said some fiscal data for general government entities were estimated due to incomplete submissions from certain authorities. The figures reflect fiscal developments for January 2026 based on available data from government entities.
