Robust Fiscal Growth
The Republic of Cyprus has recorded a notable fiscal surplus of €119.4 million during the fourth quarter of 2025, up from €94.9 million in the comparable period of 2024. This development, as reported by the Cyprus Statistical Service (Cystat), reflects a sustained strengthening in public finances.
Revenue Growth Drivers
Total revenue reached €4.69 billion in Q4 2025, rising by €482.4 million or 11.5% compared with the previous year. Growth was driven by higher tax intake across multiple categories. Revenue from income and wealth taxes increased by 18.0% to €1.29 billion, while social contributions rose by 6.2% to €1.36 billion. Taxes on production and imports grew by 5.9% to €1.24 billion. Net VAT revenues also recorded a modest increase, pointing to broad-based revenue expansion.
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Escalating Expenditure Patterns
Government expenditure rose to €4.57 billion, marking an increase of 11.1% compared with Q4 2024. Higher spending was recorded across several categories, including social transfers, compensation of employees, and intermediate consumption. Increases in other current expenditures and subsidies also contributed to the overall rise, indicating sustained fiscal activity during the period.
Momentum In The Capital Account
The capital account expanded by 20.9% to €653.5 million. Growth in this category was supported by increased capital formation and higher capital transfers. Although property income payable declined, overall capital activity remained strong, supporting investment-related spending.
Overall, the data indicate continued fiscal expansion, with both revenue and expenditure rising in parallel during the fourth quarter of 2025.
