Cyprus tax-to-GDP ratio ticked up in 2024

The tax-to-GDP ratio in Cyprus saw a slight increase in 2024, rising to 37.6 per cent from 37.5 per cent in 2023, according to data on taxation published by Eurostat.

The overall tax-to-GDP ratio, which is the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), stood at 40.4 per cent in the EU in 2024, representing an increase from 39.9 per cent in 2023.

In the euro area, the tax-to-GDP ratio also increased from 40.5 per cent in 2023 to 40.9 per cent in 2024.

In absolute terms, revenue from taxes and social contributions increased by €387 billion in the EU compared with 2023, to stand at €7.28 trillion in 2024.

This information comes from data on taxation published by Eurostat and presents some findings from a more detailed article on tax revenue statistics.

Meanwhile, the tax-to-GDP ratio varied significantly between EU countries in 2024, with the highest shares of taxes and social contributions as a percentage of GDP being recorded in Denmark (45.8 per cent), France (45.3 per cent), and Belgium (45.1 per cent).

At the opposite end of the scale, Ireland (22.4 per cent), Romania (28.8 per cent), and Malta (29.3 per cent) registered the lowest ratios.

Eurostat also reported that the tax-to-GDP ratio increased in 22 EU countries during 2024, compared with 2023.

The largest increases were observed in Malta (from 26.7 per cent in 2023 to 29.3 per cent in 2024), Latvia (33.0 per cent in 2023 and 35.5 per cent in 2024), and Slovenia (from 36.8 per cent in 2023 to 38.8 per cent in 2024).

In contrast, there were decreases in the tax-to-GDP ratio in 5 EU countries, ranging between -0.5 and -0.1 percentage points.