Public education at all levels is mainly financed by the government, either directly or through allotments to Local Authorities or Local School Boards (Σχολικές Εφορείες). Private institutions mainly raise their funds through tuition fees.  Receiving external money is not permitted for public schools in the pre-primary, primary and secondary level of education. Their only source of finance is the national budget and the management of school assets and property by the respective Local School Boards. Public universities may receive gifts, grants and funding from outside sources other than the national budget. Private institutions at all levels are not in any way restricted from receiving external funding. According to official data of the Cyprus Statistical Service (CYSTAT), public expenditure on all levels of education in 2008 was 1,293,485 thousands Euro, which accounted for 17.6 % of the government budget and 7.5 % of GDP. Pre-school and pre-primary education including special education absorbed 4.7 % of total public expenditure, primary education 27.5 %, secondary education 42 %, tertiary education 24.6 % and non-formal education including education of Cypriot communities abroad 1.32%. The biggest part (88.6%) of total public expenditure was directed to the public institutions of Cyprus, while 3.4% was directed to private institutions and 8% concerned government aid for Cypriot students and educational programmes abroad.

Public expenditure on all levels of education in 2018 was 1,250,9 thousand Euro, which accounted for 13.6 % of the government budget and 5.8 % of GDP. Pre-school and pre-primary education absorbed 5.3 %, special education absorbed 4.2 %, primary education 28.3 %, secondary education 40 %, tertiary education 20 % and non-formal education including education of Cypriot communities abroad 2.2%.