Cyprus recorded the European Union’s highest government surplus in 2025, at 3.6 per cent of gross domestic product (GDP), as public revenue rose to almost €15.9 billion, according to figures published by the Cyprus Statistical Service (Cystat) and Eurostat on Wednesday.

The surplus amounted to €1.36bn, based on audited and verified figures compiled under the European Commission’s Excessive Deficit Procedure, while government debt stood at €20.05bn, equivalent to 52.3 per cent of GDP.

Eurostat’s figures showed that Cyprus was one of only five EU member states to record a government surplus last year, alongside Denmark, at 2.9 per cent of GDP, Greece at 2 per cent, Ireland at 1.8 per cent and Portugal at 0.7 per cent.

All other member states reported deficits, with the largest recorded in Romania at 7.8 per cent of GDP, Poland at 7.2 per cent, Belgium at 5.2 per cent and France at 5.1 per cent.

Eleven member states recorded deficits equal to or greater than 3 per cent of GDP.

Cyprus’ total government revenue rose by 7.7 per cent in 2025, increasing by €1.14bn to €15.9bn from €14.76bn in 2024, Cystat reported.

The increase reflected higher receipts from several major revenue sources, particularly social contributions and taxes on income and wealth.

Revenue from social contributions rose by €379.8 million, or 8.4 per cent, to €4.9bn, compared with €4.52bn in 2024.

Taxes on income and wealth increased by €379.1m, or 10 per cent, to €4.18bn from €3.8bn.

Taxes on production and imports rose by €67.4m, or 1.4 per cent, to €4.75bn, compared with €4.68bn a year earlier.

However, net value added tax revenue fell by €16m, or 0.5 per cent, to €3.15bn from €3.17bn in 2024.

Other current transfers increased by €84.6m, or 21.4 per cent, to €480.1m from €395.5m.

Revenue from the sale of goods and services rose by €161.7m, or 18.1 per cent, to €1.06bn, compared with €894.4m in 2024.

Capital transfers increased by €25.7m, or 7.6 per cent, to €362.6m, while property income received rose by €41.5m, or 34.3 per cent, to €162.6m.

Government expenditure also increased, rising by 9.2 per cent, or €1.22bn, to €14.54bn in 2025 from €13.31bn in 2024.

Compensation of employees, including imputed social contributions and civil servants’ pensions, increased by €295.3m, or 7.6 per cent, to €4.17bn from €3.88bn.

Social transfers rose by €283m, or 5.3 per cent, to €5.59bn, compared with €5.3bn in 2024.

Intermediate consumption, covering goods and services used by government in its operations, increased by €98.5m, or 6.6 per cent, to €1.59bn.

Other current expenditure rose by €22.9m, or 2.7 per cent, to €865.8m.

The most pronounced increase was in capital expenditure, which jumped by 46.4 per cent to €1.76bn from €1.2bn in 2024, an increase of €558.3m.

This comprised gross capital formation of €1.21bn, compared with €963.6m a year earlier, and other capital expenditure of €546.3m, up from €239.3m.

In contrast, property income payable fell by €1.6m, or 0.4 per cent, to €422.6m from €424.2m.

Subsidies decreased by €31.8m, or 18.6 per cent, to €139.6m from €171.4m.

Across the EU, government expenditure in 2025 amounted to 49.4 per cent of GDP, while revenue stood at 46.3 per cent.

In the euro area, expenditure reached 49.8 per cent of GDP and revenue 46.8 per cent.