Breaking news

Cyprus Wage Growth Accelerates In First Quarter 2025 As Earnings Climb 5.4% Year-Over-Year

by THEFUTURE.TEAM
July 29, 2025

Strong Wage Gains In 2025

The state statistical service of Cyprus reported a significant milestone in average gross monthly earnings during the first quarter of 2025. Employees in Cyprus earned an average of €2,509, marking a 5.4% increase from €2,382 recorded in the same period in 2024. This upward momentum reinforces the resilience of the nation’s labor market.

Stable Quarterly Trends

Seasonally adjusted figures further emphasize the robustness of the current wage environment, with earnings increasing by 1.4% when compared to the fourth quarter of 2024. This steady increment signals sustained economic confidence and gradual recovery in the post-pandemic climate.

Gender Disparity And Earnings Progress

Breaking down the data by gender reveals that male employees earned an average of €2,689, while their female counterparts averaged €2,284 in gross monthly earnings during this period. Both groups enjoyed notable improvements, with wages rising by 5.2% for men and 5.5% for women, reflecting balanced upward trends across the workforce.

Methodology And Comprehensive Earnings Analysis

The statistical service calculates average monthly earnings by dividing total gross earnings before deductions by the number of employees. This comprehensive metric includes basic salaries, cost of living allowances, overtime, holiday fund payments, and additional compensations such as the 13th and 14th salaries and various bonuses.

Economic Implications

The latest report underscores the positive trajectory of wage growth in Cyprus, highlighting a conducive environment for both consumer confidence and broader economic expansion. The reliable data drawn from social insurance records paves the way for more informed policy-making and strategic business decisions in the region.

EU E-Commerce VAT Systems Generate €257.9 Million Revenue for Cyprus in 2024

by THEFUTURE.TEAM
August 11, 2025

Robust Revenue Growth Through Streamlined VAT Collection

Cyprus has demonstrated a significant fiscal boost in 2024 with €257.9 million generated from the European Union’s e-commerce VAT systems, according to Tax Commissioner Sotiris Markides. This impressive performance underscores the effectiveness of the One Stop Shop (OSS) and Import One Stop Shop (IOSS) frameworks in simplifying cross-border tax compliance.

Simplified Procedures for EU and Non-EU Businesses

The OSS system allows Cyprus-registered businesses to streamline VAT declaration and payment on sales to consumers in other EU countries. Companies simply register on the local OSS platform, apply the consumer’s VAT rate, aggregate their submissions quarterly or monthly, and remit a single consolidated payment. Subsequently, Cyprus allocates the appropriate share to each respective EU country. This efficient process extends to non-EU sellers as well, who can have their intra-EU distance sales managed under the Union Scheme.

Breakdown of VAT Revenue Streams

Last year’s declarations under the various schemes illustrate the system’s broad reach: €217.9 million was collected via the Union Scheme, €36.9 million through the Non-Union Scheme, and €3.1 million via the Import Scheme. While the Union Scheme caters to both EU and non-EU sellers engaging in distance sales, the Non-Union Scheme specifically accommodates non-EU firms delivering services to EU consumers. Furthermore, the Import Scheme targets goods valued at less than €150 that are imported from outside the EU.

Implications and Broader Impact

Implemented in July 2021 as an evolution from the more limited MOSS system, these reforms have not only consolidated tax collection through an expansive OSS but also integrated the IOSS for low-value imports. By designating certain online marketplaces as “deemed suppliers,” the new framework ensures that VAT collection is both efficient and equitable. Across the EU, these mechanisms have generated over €33 billion in VAT revenues in 2024, reflecting a successful effort to simplify tax compliance, reduce administrative burdens, and promote fair taxation across the bloc.

The Future Forbes Realty Global Properties

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter