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Cyprus Fiscal Surplus Set To Soar to €1.5 Billion In 2024: A Deep Dive Into Revenue Growth

by News Editor

March 4, 2025

Preliminary economic data from the Statistical Service of Cyprus paints an optimistic picture for 2024, forecasting a significant fiscal surplus of €1.5 billion, equivalent to 4.5% of the nation’s GDP. This is more than double the surplus achieved in 2023, which stood at €631.5 million or 2% of GDP.

Revenue Growth At 7.8%

For 2024, total revenues are projected to rise to €14.83 billion, marking a notable increase of €1.07 billion compared to 2023 (+7.8%). Key revenue boosts stem from the following areas:

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Production and Import Taxes: €4.68 billion (+5.5%)
Net VAT Revenues: €3.14 billion (+5.6%)
Income and Wealth Taxes: €3.81 billion (+16.7%)
Service Revenue: €1.09 billion (+28.1%)
Social Contributions: €4.5 billion (+2.7%)

Conversely, capital transfers saw a decrease of 38.4%, settling at €220.4 million.

Expenditure Increase Marginal At 1.5%

Total expenditures for 2024 are anticipated to be €13.33 billion, a nominal rise of €197.4 million (+1.5%) compared to 2023.

Notable expenditure increases occurred in:

Employee Compensation: €3.86 billion (+7.5%)
Social Benefits: €5.3 billion (+7.4%)
Interest Payments: €433.9 million (+6.3%)

Reduction areas included:

Current Transfers: €887.7 million (-24.2%)
Capital Accounts: €1.17 billion (-24.5%)
Subsidies: €153.4 million (-3.6%)

The projected fiscal surplus of 4.5% of GDP underscores Cyprus’s fiscal stability and increased tax revenue intake, despite moderate expenditure growth. This optimism aligns with Cyprus’s promising inflation outlook as seen in recent analysis.

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Cyprus Construction Trends: Permit Count Slips While Value and Scale Surge in 2025

by THEFUTURE.TEAM

July 11, 2025

The Cyprus Statistical Service (Cystat) has reported a notable shift in the construction landscape for 2025. The latest figures reveal a modest 1.9% decline in building permits issued in March compared to the same month last year, signaling a nuanced trend in the nation’s developmental activities.

Permit Count Decline in March

In March 2025, authorities authorised 572 building permits—down from 583 in March 2024. The permits, which total a value of €361.5 million and cover 296,900 square metres of construction, underscore a cautious pace in permit approval despite ongoing projects. Notably, these permits are set to facilitate the construction of 1,480 dwelling units, reflecting an underlying demand in the housing sector.

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Q1 2025: Growth in Value, Construction Area, and Dwelling Units

While the number of permits in the first quarter (January to March) decreased by 15.8% from 1,876 to 1,580, more significant, economically relevant metrics saw robust growth. Total permit value surged by 21.7%, and the authorised construction area expanded by 15.6%. Additionally, the number of prospective dwelling units increased by 16.7% compared to the corresponding period last year. This divergence suggests that although fewer permits were issued, the scale and ambition of the approved projects have intensified.

New Regulatory Framework and the Ippodamos System

Since 1 July 2024, a pivotal transition has taken place in permit administration. The responsibility for issuing permits has moved from municipalities and district administration offices to the newly established local government organisations (EOAs). The integrated information system, Ippodamos, now oversees the licensing process, streamlining data collection on both residential and non-residential projects across urban and rural areas.

Comprehensive Data Collection for Enhanced Oversight

The Ippodamos system categorises construction projects using the EU Classification of Types of Construction (CC). This platform gathers extensive data on the number of permits authorised, project area and value, and the expected number of dwelling units. It covers a broad spectrum of construction activities—from new builds and civil engineering projects to plot divisions and road construction—while excluding renewals and building divisions. The thoroughness of this new regulatory structure promises greater operational transparency and more informed decision-making for policymakers and industry stakeholders.