Social contributions in Cyprus

[pucecacou]

Could you please detail the level of the social contributions in Cyprus ?

 

[troubled soul]

8.3%

 

[CyprusBusiness]

Hi

Please specify.

You are asking socioal insurance contribution rates for which status?:

an emoyee, employer or self employed?

 

[troubled soul]

Contribution rates.​

Status	Rate
Self-employed individuals	15,6%
Employee	8,3%
Employer	8,3%
Employer's contribution to the Redundancy Fund	1,2%
Employer's contribution to the Human Resource Development Authority Fund	0,5%
Social Cohesion Fund	2%

 

[pucecacou]

Thx. No cap ?
What's the minimum wage in Cyprus ?

 

[CyprusBusiness]

There is a cap on annual contributions of €57,408 income

Also there is NHS at the level of:

- 2,65% - employee
-2.9% - employer
-4% - self employed

NHS has a cap on €180k of annual income

Minimum wage is only applicable for certain professions.

Since 1.1.2023 the Council of Ministers passed a national minimum wage decree of €940 gross per month. This is howver still uncertain how it would be implemented as it will affect small businesses negatively

 

[Houdini]

Is it possible to live a life in Cyprus for roughly 1000 EUR a month?

 

[troubled soul]

I'mRobot said:
Is it possible to live a life in Cyprus for roughly 1000 EUR a month?
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The family (2-3 people) need about 2000 -3000 EUR per month for more or less comfortable living.

 

[Houdini]

azb1 said:
The family (2-3 people) need about 2000 -3000 EUR per month for more or less comfortable living.
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That's not much... I'm impressed, maybe I should consider relocating.

 

[RealDude]

Caution, inflation explodes in Cyprus

 

[gnud]

As an owner and director of a CY company or a branch of a foreign company in CY, are there any minimal social contributions that would need to be paid even without a salary?

 

[Sols]

gnud said:
As an owner and director of a CY company or a branch of a foreign company in CY, are there any minimal social contributions that would need to be paid even without a salary?
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The company, no. But you personally must pay Gesy (GHS) of 2.65% up to 4,770 EUR/year if you take out dividends.

Toggle signature
This is the probably the answer to your question.

 

[kkein]

Sols said:
The company, no. But you personally must pay Gesy (GHS) of 2.65% up to 4,770 EUR/year if you take out dividends.
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So if a company does not issue dividends for several years, then suddenly issues dividends all in one chunk, will the gesy contribution be capped to 5k€?

 

[CyprusBusiness]

kkein said:
So if a company does not issue dividends for several years, then suddenly issues dividends all in one chunk, will the gesy contribution be capped to 5k€?
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Yes but there is a deemed dividend contribution every 2 years. So even if you do not distribute dividends due to the deemed dividend 70% of the distributable reserves will be considered as declared dividend and subject to special defence contribution and GESY. As you are a non-dom then only Gesy will be aplicable at 2.65% with a cap of 180k of income