Cyprus recorded the EU’s largest surplus in 2025 — Cyprus Mail

In 2025, Cyprus recorded the highest general government surplus among European Union countries — 3.6% of gross domestic product, or €1.36 billion. The country’s public debt stood at €20.05 billion, equivalent to 52.3% of GDP, Cyprus Mail reports, citing data from the Statistical Service of Cyprus and Eurostat.

The surplus was calculated based on verified data prepared under the European Commission’s excessive deficit procedure. Cyprus was one of five EU countries that ended 2025 with a surplus.

Surpluses in only five EU countries

After Cyprus, Denmark had the highest surplus at 2.9% of GDP. Greece recorded 2%, Ireland 1.8%, and Portugal 0.7% of GDP. The remaining EU member states recorded public-sector deficits.

The largest deficit was recorded in Romania at 7.8% of GDP, followed by Poland at 7.2%, Belgium at 5.2%, and France at 5.1%. In 11 EU countries, the deficit was equal to or exceeded 3% of GDP.

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Revenue and expenditure growth

Total revenue of Cyprus’s public sector increased by 7.7%, or €1.14 billion, to €15.9 billion from €14.76 billion in 2024. Revenue from social contributions grew the most — by €379.8 million, to €4.9 billion — as did taxes on income and property, which rose by €379.1 million to €4.18 billion.

Taxes on production and imports increased by €67.4 million to reach €4.75 billion. At the same time, net revenue from value-added tax decreased by €16 million to €3.15 billion.

Cyprus’s public-sector expenditure increased by 9.2%, or €1.22 billion, to €14.54 billion. Capital expenditure saw the largest increase, rising by 46.4% to €1.76 billion. Social transfers rose to €5.59 billion, while employee compensation expenditure reached €4.17 billion.

Overall, EU general government expenditure in 2025 amounted to 49.4% of GDP, while revenue stood at 46.3%. In the euro area, these figures were 49.8% and 46.8% of GDP, respectively.