Our Services :
Taxation
Social insurance contributions
SOCIAL INSURANCE
|
The maximum level of
annual income on which social insurance are paid for weekly
employees is €46.020
The maximum level of annual income on which social insurance are
paid for monthly employees is €46.032 |
|
|
Employer % |
Employee % |
Self-employed % |
Notes |
|
Social insurance |
6,3 |
6,3 |
11,6 |
1 |
|
Holiday |
8 |
- |
- |
1,2 |
|
Social cohesion |
2 |
- |
- |
3 |
|
Redundancy |
1,2 |
- |
- |
|
|
Industrial training |
0,5 |
- |
- |
|
Notes: |
|
1. Restricted to the maximum level
as stated
|
|
2. Being the minimum subject to the
industry classification or nil if other acceptable arrangements
exist |
|
3. Under the
Social Coherence Fund Law, all employers as of 1/1/2003 are
liable to this contribution on their employee’s emoluments.
However, this does not apply to International Business Companies
where their employees are not ordinarily residents in the
Republic of Cyprus |
|
Classification of self-employed persons |
Weekly salaries |
|
Lower limit € |
Upper limit € |
Doctors, pharmacist, specialists in health matters
(qualified), accountants, economists, lawyers and other professionals
exercising the profession for:
Less than 10
years;
More than 10
years.
|
325
653
|
885
885
|
| Wholesalers, estate agents, directors
(businessmen). |
653 |
885 |
| Professors and teachers for:
Less than 10
years;
More than 10
years.
|
316
632
|
885
885
|
| Builders and other related
construction industry businesses |
396 |
885 |
|
Drivers, excavator and other related professions,
technicians, associates in media, machinery users (apart from the
construction industry) assemblers of products, writers, typists,
cashiers, secretaries and technicians which do not fall in any other
category. |
316 |
885 |
| Shopkeepers, cleaners, messengers,
guards and owners of dry cleaners |
299 |
885 |
| Butchers, bakers, confectioners and
similar professions |
241 |
885 |
| Designers, computer users, ship
engineers, agents and musicians, magicians, persons that do not fall in
any other professional category |
325 |
885 |
|
Farmers, stock breeders, aviarists, fishermen and
other related professions, hawkers, postmen, refuse collectors, workers
in mines and quarries, marine workers specializing in underwater
constructions, installators of forklift equipment, street sweepers and
people responsible for the provision of services and salesmen |
219 |
885 |
SOCIAL GRANTS 2008
|
Description |
€ |
|
Every child receiving full time education
outside Cyprus or abroad |
2.562,90 |
|
Families with more than three children
receive additional grant of |
854,00 |
|
Blind person |
3.400,00 |
Note:
All families resident in Cyprus fulfilling the provisions of the
Law, are entitled to a basic child grant, whereas those families
that had a gross family (applicant, spouse, children) income for
the year 2005 below €34.172 are entitled to an additional child
grant as indicated in the table below.
Evidence of income is only required for the first application. |
|
Number of children in
the family |
Basic annual grant |
Additional annual grant
for families with earnings of up to €17.086 per annum |
Additional annual grant
for families with earnings between €17.086 and €34.172 per annum |
|
No. |
€ |
€ |
€ |
|
1 |
392 |
98 |
49 |
|
2 |
783 |
392 |
294 |
|
3 |
2.349 |
882 |
735 |
|
3+ per child |
1.293 |
431 |
269 |
|
|
FOREIGN PENSIONS
Retired residents from overseas are taxed
on their pensions at the rate of 5%, whether it is a state,
company or personal pension received in Cyprus from abroad. The
first €3.417,20 are exempt from tax.
To qualify for the low rate, the pensioner has to be resident of
Cyprus for at least 183 days.
The taxpayer has the option, every year of assessment to elect
to be taxed at the normal rates if it is more beneficial.
Remember that if you continue to have assets in the Britain for
example, such as bank accounts or an investment portfolio, one
will still be liable for UK tax on any income, even if you are
resident in Cyprus.
Therefore one must move their assets offshore and then bring the
income into Cyprus hence there will be no tax to pay.
British retirees for example will also be attracted by the fact
that Cyprus has abolished Inheritance Tax in 2000. To benefit
from this, expatriates will have to prove they have severed all
links with Britain. |
