Social Security Tax in Cyprus. See The Rates

Updated 07 July 2021

Social Security Tax by Employees – 2021

By the Social Security Law of 2010/59(1)/10 every physical person who is working in Cyprus either as an employee or as a self-employed professional has to pay social security tax to the Government of Cyprus and Gesy ( Gesy is the National Health System).  By Article 4 of this law every person who has worked as an employee in any taxable period, there is a liability of payment of social security tax, by the employee and his employer according to the provisions of the law.

For the years till 2021 the tax rate is 25.85% on the salary or wages or the employee according to Article 5 of this law. Such tax is split in 3 parts. The percentage of 8.3% plus 2.9% Gesy is paid by the employee i.e. a total of 10.95%.

The percentage of 8.3%, plus 2.9% Gesy, plus 2% Cohesion Fund, plus 1.2% redundancy fund, plus 0.5% Human Resources Development fund are paid by the Employer.

The social security tax for employees is paid monthly, with a grace of a few days into the next month without any penalty. If it not paid in time there is a penalty. When an employee is employed by two or more employers in the same taxable period, there is a liability to pay the tax by both employers according to Article 8 of the law. Article 9 of the law provides that when the employee works both as an employee and as self-employed in the same period then he has the liability to declare both incomes and pay the assessed tax on both of them. According to Article 16 no tax is payable by an employee after he has reached the retirement age.

Social security tax by Self-Employed – 2021

Article 11 of the Social Security Law provides that every person who has worked as self-employed in any period he has to pay the social security contribution and so has the Government. By Article 12 of the law such tax is 19.6% on the income of the self- employed person.

A percentage of 15.6% is paid as social security tax and 4% is paid as Gesy. This tax is payable every quarter. Such quarters are January to March, April to June, July to September and October to December. There is a grace on one month in paying the tax, after that there is a penalty. The above provisions are valid for the period until 2021 included. For any updates we`ll be back.

Companies

A company does not pay SS Tax or Gesy on its  income. Nor does the owner of the company. But is the owner of a company is living in Cyprus he pays 2.65% Gesy on his dividends up to a sum of €180.000.