Taxes and social contributions reach 36.3% of GDP

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Cyprus’ tax-to-GDP ratio increased to 36.3% in 2025, up from 36% the previous year, according to figures published by Eurostat on Thursday.

Despite the rise, Cyprus remained below the European Union average of 40.7% and the euro area rate of 41.3%.

The figures cover total revenue from taxes and net social contributions as a share of gross domestic product (GDP).

Tax revenue increases across the EU

Eurostat data show that the overall tax-to-GDP ratio across the EU rose from 40.2% in 2024 to 40.7% in 2025.

In the euro area, the ratio increased from 40.7% to 41.3% over the same period.

The increase in Cyprus was more modest, with the ratio rising by 0.3 percentage points year on year.

EU tax and social contribution revenue reaches €7.7 trillion

In absolute terms, total revenue from taxes and social contributions across the EU increased by €401 billion compared with 2024.

The total reached €7.686 trillion in 2025, reflecting the overall rise in tax and social contribution revenue across the bloc.


Also read: Mandatory provident funds among options under review
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