
Never really understood Cyprus taxes and public finances? Neither did I. So I put them in plain words
I wanted to know what happens to my money after the payslip, and ended up deep in Eurostat tables. Three numbers I didn't expect:
- The lightest tax on work, the heaviest on companies. Taxes and contributions take 26% of what a job costs here, the lowest in the EU. In Germany it's 47%, so maybe don't move there for the payslip. Company taxes bring in 6.9% of the economy, the highest in the EU. The state takes less from your pay and more from companies.
- 37% of a liter of petrol is tax. 65 cents of every €1.73, and that's with the duty temporarily cut by seven cents. Every fill-up comes with a silent passenger. On a pack of cigarettes, it's three-quarters of the price.
- Defense is the fastest-growing line. The 2027 budget bill takes the Ministry of Defense from €628m to €895m, up 42%, and almost all of the rise is in one line the budget doesn't itemize. Part of it is probably borrowed on a 45-year EU loan, so some of it will still be getting paid off in the 2070s.
Each of the three also splits people, and every story on Foroi sets out both sides, so for once you can argue with the right numbers:
- Is the state too dependent on company tax? A success, because companies come here and pay, or too dependent, because it can leave as fast as it came.
- Should fuel be taxed more, or less? Less, for cheaper fuel now, or more, to tax fuel by the carbon it emits. Cyprus has promised Europe the second, and keeps putting it off.
- Should defense be borrowed? Yes, because a long, cheap loan spreads the cost, or no, because it's still debt, taken on while paying debt down.
Under each story there's a one-tap "Which side convinces you?". No account, no email, no newsletter pop-up. The results show once enough people have answered. Or make your case here. I'm more interested in the reasoning than the score.
Foroi: Cyprus public money, in plain words. It takes no side (not even in the comments), it isn't tax advice (please don't file your return based on a Reddit post), and corrections are logged in public. Free, no ads, in English, Greek and Russian.
Mind the VAT (from 12 October, not on your bread) 💶