Cyprus tax-to-GDP ratio reaches 36.3 percent in 2025

According to data released by Eurostat in October 2026, the ratio of taxes and net social contributions to GDP in Cyprus rose to 36.3% in 2025, up from 36% in 2024. Despite this increase, the country remains well below the European Union average, which climbed to 40.7% from 40.2% the previous year, and the euro area average, which reached 41.3%.

Across the European Union, total revenue from taxes and social contributions saw a significant rise, increasing by €401 billion to a total of €7.686 trillion in 2025. Member states continue to show marked variations in their fiscal structures. France reported the highest tax-to-GDP ratio at 46%, followed by Denmark at 45.1% and Belgium at 44.7%. Conversely, countries such as Ireland, Romania, and Malta recorded some of the lowest ratios in the bloc.

While some domestic reports characterize Cyprus as a low-tax jurisdiction, the slight annual increase reflects broader European trends of rising state revenues, partly driven by inflationary pressures. The data highlights the structural disparities in how member states manage government revenue relative to their overall economic output.