Opens in a new tab

Breaking news

Cyprus Records €552.9 Million Fiscal Surplus In First Five Months

Cyprus recorded a general government fiscal surplus of €552.9 million during the first five months of 2026, according to preliminary figures released by the Cyprus Statistical Service (Cystat). Higher tax revenue and stronger social contributions helped offset continued growth in public spending.

Revenue Growth Outpaced Spending

The surplus for the January-to-May period amounted to 1.4% of gross domestic product, compared with €544.5 million, or 1.5% of GDP, in the corresponding period of 2025.

Total government revenue increased by €282.5 million, or 4.8%, reaching €6.2 billion from €5.92 billion a year earlier.

Income Tax, VAT And Contributions Drive Gains

Taxes on income and wealth recorded the largest increase, rising by €115.2 million, or 8.4%, to €1.49 billion. Social contributions also posted solid growth, climbing by €102.2 million, or 5.2%, to €2.07 billion.

Revenue from taxes on production and imports rose by €93.1 million, or 4.9%, to €2.00 billion. Within that category, net VAT receipts increased by €138 million, or 11.0%, to €1.39 billion.

Additional support came from capital transfers, which rose to €38.8 million from €12.4 million, and from the sale of goods and services, which increased by €9.4 million to €433.2 million.

Those gains were partly offset by lower property income, which declined by €24.2 million to €68.5 million, and a €39.6 million fall in current transfers to €115.7 million.

Expenditure Continues To Expand

Government expenditure rose by €274.1 million, or 5.1%, to €5.65 billion, compared with €5.38 billion in the same period of 2025.

Intermediate consumption increased by €52 million to €590.3 million, while compensation of employees, including imputed social contributions and civil servants’ pensions, rose by €47.6 million to €1.64 billion.

Social benefits recorded the largest increase in absolute terms, climbing by €108.2 million, or 4.9%, to €2.31 billion. Interest payments also rose significantly, increasing by €32.3 million, or 15.7%, to €238.4 million.

Current transfers climbed by €70.5 million, or 19.6%, reaching €429.3 million.

Capital Spending Softens

Capital expenditure moved in the opposite direction, falling by €26.8 million, or 6.0%, to €418.7 million. Gross capital formation declined by €25.4 million to €327.7 million, while other capital expenditure edged down to €90.9 million. Subsidies also decreased, dropping by €9.6 million to €31.8 million.

Preliminary Data Carry Caveats

Cystat noted that the figures remain preliminary, with estimates used for several general government entities, particularly within the local government subsector, as complete data had not yet been submitted by the relevant authorities.

Cyprus Promotes Ship Registry In Asia As Fleet Grows To 25-Year High

Cyprus is stepping up efforts to attract international shipowners, with Shipping Deputy Minister Marina Hadjimanolis holding high-level meetings in China and Japan as the country’s ship register reaches its strongest level in 25 years.

Running from October 14 to 29, the Asian mission focuses on expanding commercial ties, promoting the advantages of the Cyprus flag and strengthening cooperation with shipowners, shipbuilders and maritime authorities.

China Meetings Target Shipowners And Industry Leaders

In Shanghai, Hadjimanolis met Wang Qian, vice-director of the Shanghai Pudong New Area Commission of Commerce and Shipping Service Office, ahead of the North Bund International Shipping Forum on October 20–21. Organisers expect around 4,000 participants from more than 50 countries and regions, with discussions covering international shipping, maritime safety, financing, insurance, digitalisation and the transition to cleaner fuels.

The minister also met representatives of Dalian Trawind Shipping and Fortuna Shipbrokers Inc. to present the Cyprus registry’s advantages and explore registration opportunities for vessel owners. On October 20, she is scheduled to speak at the 10th Annual Capital Link International Shipping Forum in Pudong, joining a ministerial roundtable on international maritime leadership.

A visit to Zhoushan is also planned for the naming ceremony of Kypros Island, a new vessel for the Cyprus register owned by Safe Bulkers. Launched in June at the Tsuneishi shipyard on Xiushan Island, the 81,200-deadweight-tonne methanol dual-fuel bulk carrier is scheduled for delivery at the end of October. According to the Zhejiang Maritime Safety Administration, sea trials were due to take place between October 11 and 16.

Japan Engagements Strengthen Maritime Ties

Before travelling to China, Hadjimanolis met Japan’s Parliamentary Vice-Minister for Land, Infrastructure, Transport and Tourism, Kenta Aoshima, in Tokyo on October 16. Her programme also included meetings with senior representatives of Shoei Kisen Kaisha, Nihon Shipyard, NYK Line, ITOCHU Corporation and SSY Projects, focusing on cooperation with Japanese shipowners, shipbuilders and shipping operators.

At the 5th Annual Capital Link Japan Maritime Forum, held at the Tokyo American Club, Hadjimanolis discussed maritime leadership, competitiveness, policy and international cooperation with Capital Link founder and president Nicolas Bornozis. Other sessions examined Japan’s shipbuilding strategy, new-vessel financing and the development of ammonia-powered ships.

The Tokyo programme followed a Cyprus Ship Registry reception on October 15 for representatives of Japan’s maritime and business communities. Hadjimanolis outlined the country’s shipping services and regulatory framework, while Polys Hajioannou, chief executive of Safe Bulkers and president of the Cyprus Union of Shipowners, delivered the opening remarks.

Registry Reaches Highest Level In 25 Years

At the reception, Hadjimanolis said the Cyprus Ship Registry had grown by 27% since September 2023, reaching its highest level in a quarter of a century. She attributed the expansion to efforts to improve competitiveness, simplify administrative procedures and provide more responsive services to international shipowners.

Cyprus’s inclusion on the White Lists of the Paris and Tokyo Memoranda of Understanding was another point highlighted by the minister. These lists reflect the safety and inspection performance of ships flying a national flag.

Existing commercial links with Japan include Safe Bulkers’ announcement in May of four Japanese-built dry bulk vessels scheduled for delivery in 2029.

South Korea Next On The Maritime Agenda

Hadjimanolis’ mission will continue in South Korea, where she is expected to attend the 2026 World Maritime Day Parallel Event and Korea Maritime Week alongside International Maritime Organization Secretary-General Arsenio Dominguez and government representatives from several countries.

Her programme will also include discussions on implementing international maritime conventions and bilateral talks aimed at strengthening Cyprus’s shipping ties with South Korea.

The Asian outreach comes as maritime centres compete for shipowners amid geopolitical uncertainty, fleet renewal and pressure to reduce shipping emissions. For Cyprus, the strategy combines promotion of its registry with closer relationships across Asia’s shipbuilding and shipping sectors.

The Future Forbes Realty Global Properties
Uol
eCredo
Aretilaw firm

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter