Contributions to the Cyprus National Health Insurance System (NHIS)

Contributions to the NHS started on 1 March 2019 and the contributions will only cover outpatients.

From 1 March 2020, the contributions will be increased in order to cover both outpatients and inpatients.  The system is expected to be fully operable on March 1, 2020.

From 1 March 2019, taxpayers contribute:

• Each employee will contribute 1.70%  of his salary and each employer will contribute 1.85% of the salary of each employee for the NHS.
• Each self-employed person will contribute 2.55% of his/her earnings.
• Each pensioner will contribute 1.70% of his/her pension.
• Each state official will contribute 1.70% of his/her salary.
• All other persons who have an income will contribute 1.70% of the amount of his income.
• A State Fixed Fund will contribute 1.65% of the salaries and pensions of all beneficiaries.

Second phase – March 1, 2020

NHS is expected to be fully operable in June 1, 2020, however increases in taxing will start from March 1, 2020. Beneficiaries will be able to access all healthcare services under the system.

Contributions will rise to:

• Each employee will contribute 2.65% of his salary and each employer will contribute 2.90% of the salary of each employee.
• Each self-employed person will contribute 4% of his/her earnings.
• Each pensioner will contribute 2.65% of his/her pension.
• Every state official will contribute 2.65% of his/her earnings.
• All other people who have an income will contribute 2.65% of it.
• A State Fixed Fund will contribute 4.55% of the earnings and pensions of all beneficiaries.

The following are considered as exempt employments:

1. employment of any member of the naval, military and air forces of the Government of a country other than Cyprus
2. employment in the public or diplomatic service of the Government of a country other than Cyprus when the person employed is hired outside Cyprus
3. employment in the service of the spouse of the person employed
4. employment of a person who has not his permanent residency in Cyprus or in another Member State, to an employer’s service who has neither his habitual residence or registered office in Cyprus nor the place of business in Cyprus
5. agricultural employment in the service of the father or mother

Method of payment of contributions and liability for their payment / deduction

1. Employees’ contributions to NHIS will be deducted by the employer from the total earnings of the employees (as defined in the Social Insurance Law) and, together with the employer’s contributions, will be paid to the Social Insurance Fund, as in the case of the respective contributions to the Social Insurance Fund. The maximum annual insurable earnings for employees applicable for the purposes of Social Insurance Fund contributions do not apply in the case of NHIS.

2. Self-employed persons’ contributions to NHIS on the sums for insurable earnings provided for contributions to the Social Insurance Fund are paid to the Social Insurance Fund, whereas contributions on income of self-employed persons beyond these sums are paid to the Tax Commissioner.

3. NHIS contributions on pensions are deducted by the person paying the pensions and paid to the Tax Commissioner, except for the pensions paid to the pensioners by the Social Insurance Fund, which are deducted from the pension and are paid to NHIS. The contributions on pensions received from abroad are paid to the Tax Commissioner by the pensioner himself.

4. NHIS contributions on officers’ remuneration are deducted by the Republic or the person paying the remuneration and are paid to the Tax Commissioner.

5. NHIS contributions on rents received by an individual from sources within Cyprus are deducted by the payer, provided that the payer is a company, partnership, the Republic of Cyprus or a local authority (as in the case of special defence contribution) and paid to the Tax Commissioner.

6. NHIS contributions on dividends or interest received by an individual from sources within Cyprus are deducted by the payer (as in the case of the special defence contribution on the relevant income) and paid to the Tax Commissioner.

7. NHIS contributions on income from abroad or on any other income not mentioned above, are paid by the individual who receives them to the Tax Commissioner.

8. NHIS contributions on rents received by an individual from sources within Cyprus by another individual and for which no deduction is made under paragraph 6 above are paid to the Tax Commissioner by the individual who receives the rents.

9. It is noted that the total amount of the annual income of an individual on which contributions are paid to NHIS is 180.000 euro.

For more information you can visit the official site of NHIS (ΓΕΣΥ)

https://www.gesy.org.cy/sites/Sites?d=Desktop&locale=el_GR&lookuphost=/el-gr/&lookuppage=home

Our team will be glad to assist you with the applications/provisions of the NHIS and also with any queries you may have in relation with the above.