Cyprus National Health Insurance System (NHIS) is a modern and integrated health insurance system for Cypriot citizens
Who is under the Cyprus National Health Insurance System (NHIS)
All citizens who have their residence in areas controlled by the Government of Cyprus and fall into one of the following categories:
- Cypriot citizens
- European citizens who work, or have acquired a right of permanent residence in Cyprus
- The family members of the above
When will the Cyprus National Health Insurance System (NHIS) be implemented?
The NHIS will be implemented in two phases:
- June 2019 – Application of Outpatient Care
- June 2020 – Complete implementation of NHIS with the introduction of In-patient Health Care Services,
Who are obliged to pay contributions to the Cyprus National Health Insurance System (NHIS)
Natural persons who receive income both in and outside the Republic of Cyprus are required to pay contributions. The following are required to pay to the Cyprus National Health Insurance System (NHIS):
- Employees (including benefits in kind)
- Employers
- The State
- Self-employed
- Retired
- Individuals who receive income from interest, dividends, rents, intellectual property rights, benefits in kind, interest on director’s / shareholder’s balances, pursuance of profession in Cyprus like musicals, other relevant income etc.
- Officials (persons holding a state or municipal office)
- Other persons not resident in the Republic of Cyprus who receive income from the Republic of Cyprus (subject to conditions)
How Cyprus National Health Insurance System (NHIS) payments are calculated
| Contribution Percentages | 1st Phase Percentages | Full adoption Percentages |
| Employees | 1,70% | 2,65% |
| Employers (and the State as employer) | 1,80% | 2,90% |
| State | 1,65% | 4,70% |
| Self Employed | 2,55% | 4,00% |
| Retired | 1,70% | 2,65% |
| Individuals who receive income, interest, dividends, rents, etc. | 1,70% | 2,65% |
| Officials (persons holding a state or municipal office) | 1,85% | 2,65% |
The contribution amount in the Cyprus National Health Insurance System (NHIS) is calculated by a percentage of the total remuneration of each individual, with a maximum sum of remuneration of 180,000 Euros per year.
When is the first starting date for contributing to the Cyprus National Health Insurance System (NHIS)?
The first starting date for contributing to the NHIS is March 1, 2019
Which departments in Cyprus are responsible for the collection of contributions?
The collection of contributions is made by:
- The Social Insurance Services department of Cyprus,
- The Cyprus Tax Department;
- The Treasury of the Republic of Cyprus.
In practice, how the Cyprus National Health Insurance System (NHIS) cuts are made on dividends
As of March 1, 2019 both actual and deemed dividends are subject to Cyprus National Health Insurance System (NHIS) and the payment is made on which it is declared first.
It is worth noting that there is a significant benefit for Cypriot citizens and individuals who have their permanent residence in Cyprus to distribute dividends by February 28, 2019. Where dividend taxes arise, they will have to be settled in the month following the date the dividends are declared. That is until 31 March 2019.
In practice, how are the Cyprus National Health Insurance System (NHIS) cuts are paid on salaries and rental income
The relevant forms must be completed and submitted together with the relevant payment.
Employees
- For March and onward, completion of revised I.R. 59 by taking into consideration NHIS cut.
- Together with the calculation of the monthly PAYE, preparation of relevant Cyprus National Health Insurance System (NHIS) form and payment of the relevant amount via the JCC website.
Rentals received by natural persons
- Payable together with the form when paying special defense contribution on dividends (I.R. 601)
It is expected that more practical guidance will be provided with regards to deduction and payment of the above contributions to NHIS
Contact us:
For additional information please contact us:
E-mail address: info@pkf-nic.com
Telephone + 357 22 462727
March 2019
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Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.
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