Cyprus recorded a general government fiscal surplus of €770.6 million in the first seven months of 2026, equivalent to 2.0% of GDP, according to preliminary figures released by the Statistical Service on Monday.
The surplus was €11 million higher than the €759.6 million recorded in the same period last year, although its share of GDP fell from 2.1% to 2%.
The improvement came as government revenue grew faster in absolute terms than expenditure. Revenue increased by €354.1 million, or 4.1%, reaching €8.91 billion, while total spending rose by €343.1 million, or 4.4%, to €8.14 billion.
Taxation provided a major contribution to the increase in state revenue. Receipts from income and wealth taxes rose by €157.5 million, or 7.7%, to €2.19 billion. Social contributions also increased significantly, rising by €207.2 million, or 7.5%, to €2.98 billion.
Taxes on production and imports brought in €2.9 billion, an increase of €217.7 million, or 8.1%, compared with the first seven months of 2025. VAT revenue was particularly strong. Net VAT receipts climbed by €259.5 million, or 14.7%, to €2.03 billion, from €1.77 billion a year earlier.
