tax revenues continue to grow. In the first eight months of 2026, Cyprus’s government revenues exceeded spending by €1.59 billion. That is €320 million more than in the same period last year.

According to preliminary data from the Statistical Service of Cyprus, the budget surplus amounted to 4.1% of GDP, compared with 3.5% a year earlier.

Main figures for January–August: • Government revenues: €10.84 billion (+6%). • Government spending: €9.25 billion (+3.3%). • VAT receipts: €2.35 billion (+14.7%). • Taxes on income and property: €3.08 billion (+14.2%). • Social contributions: €3.36 billion (+7%).

At the same time, government spending also increased. Social benefits accounted for €3.8 billion, and wages for public-sector employees for €2.64 billion.

Capital expenditure, including investment and other capital payments, fell by 5.3% to €819.8 million.

The main reason for the larger surplus is that tax revenues are growing faster than government spending. Income from VAT and from the taxation of individuals and legal entities rose especially noticeably.

The Statistical Service notes that the data are preliminary and that some figures may still be revised.

@cyprus_kipr