Breaking news

Cyprus Tax Debt Surges to €4.05 Billion in Q1 2025 Amid Mounting Collection Challenges

Overview of Rising Tax Liabilities

In the first quarter of 2025, Cyprus’ overdue tax liabilities escalated to €4.05 billion, marking an increase of nearly €1 billion compared to the corresponding period in 2024. This figure, reported by the Tax Department to the House under article 9E of the Collection of Taxes Law of 1962 and the VAT Law 95(I)/2000, underscores growing fiscal challenges faced by the nation.

Detailed Breakdown of Direct Tax Arrears

The comprehensive report, delivered by Tax Commissioner Sotiris Markides, reveals that of the €3.4 billion owed in direct taxation, €2.54 billion constitutes unpaid tax, accompanied by €620.2 million in interest and €237.3 million in surcharges. However, the effective recoverable amount is significantly diminished. For instance, €867.6 million remains uncollectible due to pending appeals and objections, while debts related to insolvency or bankruptcy proceedings account for €665.3 million across 44,184 taxpayers. Furthermore, a monitored repayment plan involving monthly installments is in place for arrears amounting to €28.4 million across 422 taxpayers.

Challenges in VAT Collection

The report also provides insights into VAT arrears, which now total €656.6 million. This includes €454.3 million in unpaid taxes, supplemented by €152 million in interest and €50.2 million in surcharges. With many debts being transferred into the TFA system, detailed categorization remains pending for the majority of cases. Nevertheless, €601.7 million linked to 7,273 taxpayers is under active management involving charges on immovable property, allocated to €369.6 million for direct taxation and €232.1 million for VAT.

Recovery Measures and Enforcement

Judicial and administrative measures have been progressively deployed. Direct tax arrears deemed collectible without court involvement stand at €1.27 billion, in addition to €424.6 million in VAT, while banks have already frozen or seized approximately €2 million. Strengthening enforcement, charges on immovable property and other legal instruments have been applied to secure a further €603.6 million worth of debts, and judicial enforcement actions cover €365.4 million linked to 4,332 taxpayers.

Operational Shortcomings and Audit Concerns

An accompanying audit service warning highlighted a systemic loss of potential revenue attributed to thousands of cases from 2014–2017 that fell outside the legal deadlines for assessment. The oversight impacted both individual and corporate taxpayers, with belated assessments undermining the state’s capability to enforce collection. The audit also pointed out that many cases were processed without rigorous audits, urging the Tax Department to prioritize high-risk firms and adhere strictly to legal assessment timelines to safeguard public funds.

Conclusion

The findings underscore a critical juncture for Cyprus as the nation grapples with escalating tax arrears amid evolving economic challenges. Strategic reforms in tax enforcement and timely assessments are essential to restore fiscal discipline and secure the revenue base necessary for sustainable public finance.

Women Make Up A Majority Of The EU’s Science And Technology Workforce But The Real Gap Is Elsewhere

Women now make up the majority of the EU’s science and technology workforce. According to Eurostat, in 2025, more than 81.6 million people aged 15 to 74 were employed in science and technology occupations across the EU. Of those, 52.5% were women, equal to 42.8 million women. The number of women in these occupations rose by 27.9% compared with 2015, an increase of more than 9.3 million over a decade.

On the surface, the numbers resemble progress. However, Eurostat’s category requires context before that figure can be read accurately. The data refers to HRST, or Human Resources in Science and Technology, specifically people employed in science and technology occupations. These are roles where the main tasks require professional or technical knowledge in physical and life sciences, but also in social sciences and humanities. That definition is wider and broader than engineering, ICT, laboratory science, or high-tech research alone.

Zooming In

The gender picture changes once the data moves from a wider definition of the workforce to the narrower scientist-and-engineer (research and manufacturing) subgroup.

Scientists and engineers represented almost a quarter of all people employed in science and technology in the EU in 2025. Eurostat describes scientists and engineers as often being the innovators at the centre of technology-led development, making them an important subgroup to focus on separately.

Women accounted for only 40.8% of scientists and engineers in 2025, despite making up more than half of the wider category. That share has increased by a mere 0.5 percentage points over the past decade. The absolute number of women working as scientists and engineers rose from 5.3 million in 2015 to 8.2 million in 2025, despite the push from national and international organisations to increase the number of women in the field. Europe has expanded the number of women in science and technology occupations over ten years. However, that expansion has not extended equally into the scientist-and-engineer subgroup, where much of Europe’s research and innovation work is conducted.

In 2025, of the 39.4 million women aged 25 to 64 working in science and technology occupations in the EU, 35.5 million worked in service activities. Only 2.7 million worked in manufacturing. Women accounted for 57.5% of science and technology employment in services, but only 31.3% in manufacturing.

In 2025, the highest shares of women employed in science and technology occupations were recorded in Latvia at 62.4%, followed by Hungary’s Great Plain and North region at 61.1%, Estonia at 60.5%, Poland’s Central macroregion at 60.4%, and Lithuania at 60.3%. No EU country recorded a majority of women among science and technology workers in manufacturing.

Break-down

Eurostat’s figures measure employment in broad science and technology occupations. They do not show job security, pay levels, management roles, promotion rates, research leadership, or whether women are concentrated in junior or senior workplace positions.

The classification of “senior” also requires additional explanation. Eurostat reports that 45.9% of science and technology workers aged 25 to 64 in the EU were classified as “senior” HRST in 2025. In this dataset, “senior” refers to workers aged 45 to 64. It does not mean senior manager, senior researcher, team lead, or decision-maker.

A high female share in the wider Human Resource Science and Technology (HRST) category does not parallel equal representation across scientists, engineers, manufacturing roles, senior posts, pay, research funding, or decision-making. These figures also reflect the occupational mix inside each country or region, not only structural progress across all areas of science and technology.

The Case Of Cyprus

Eurostat data places Cyprus’s overall science and technology employment at 37.2% of the labour force in 2025, slightly above the EU-27 figure of 36.9%, and above Greece at 26.8%, Malta at 33.9%, and Turkey at 18.2%. This figure covers the total share of the labour force employed in science and technology across all genders.

Progress Or Work-in-Progress?

52.5% in the broad category. 40.8% among scientists and engineers. 31.3% in manufacturing. Europe’s gender gap in science and technology hasn’t closed yet, and there is still work to be done to encourage and support more women to enter the field, especially in research and manufacturing.

Let’s not wait another decade for another couple of percentage points of hope.

The Future Forbes Realty Global Properties
Uol
eCredo
Aretilaw firm

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter