When Do I Pay Cyprus National Health Tax?

ProACT Sam looks at when and how you pay the new Cyprus Health Insurance Taxes

Cyprus is seen as a low tax place, but that is not absolutely true.

Income Tax, Savings Income Tax, Rental Income Tax, VAT, Corporation Tax and now National Health Insurance tax are taxed separately.

Tax can be paid at source, in an annual return, or by self assessment.

It is an individual tax payers responsibility under tax law to pay their taxes and make returns on time.

ProACT Partnership Tax Saving Expat Experts can help, advise and guide Expats Living and Working Abroad clarify their tax obligations and offer the Know How to make returns and payments.

New Health Insurance Tax for Cyprus 2019

Up until 2018 anyone with Income below €19,500 would not pay income tax in Cyprus.

If not working and paying social insurance, as employee or self employed, there would be:

  • no requirement to pay tax

  • no requirement to submit a tax return

This has all changed in 2019, with the introduction of a national health system that is universal, open to all tax residents and citizens, there comes a liability to a new tax from 1/3/2019.

This paying Social Insurance through employment or self employment pay the new Health Insurance tax with these payments.

People receiving benefits and pensions arising in Cyprus will have the Health insurance Tax deducted at source.

EU Expats with a state pension and registered S1 can apply for an exemption certificate to avoid health fees at point of treatment and liability to to the Health Insurance Tax.

Everyone else must pay the New National Health Insurance Tax if tax resident in Cyprus.

Even if not not registered for the health service.

On worldwide income.

Or Cyprus income arising if non resident.

How National Health Tax in Cyprus is Paid.

For all worldwide income not taxed at source in Cyprus, or where tax is paid with social insurance, then 1.7% National health insurance tax is payable on worldwide income including

  • investment income

  • savings and interest

  • dividend income

  • rental income

  • overseas work income

Until 2018 Expats would not have paid any tax on this income, as non-doms, or working overseas.

The new health Insurance tax is payable on this irrespective of concessions and reliefs for non-doms and Expats Working Abroad outside cyprus.

The full 2019 Cyprus tax return due in 2020 will confirm this income and taxes due.

Any Health insurance taxes should be paid in two instalments in July 2019 and December.

ProACT Can help Expats assess their liability and submit online temporary and full tax returns.

Read our Guide to Expat Healthcare in Cyprus including How it Works, the costs and payments for Family, Business, and Investors and lists the actions for Expats to consider and the likely impact of Brexit.


ProACT Know How Healthcare Cyprus 

ProACT Expat Experts are here to help, if you need any help and assistance on how to qualify for and register in the Cyprus Health Service, contact us.


Get the guide to the new Cyprus healthcare system

Expat Healthcare in Cyprus
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Healthcare in Cyprus is changing. 

From 26th of April 2019 the doors will open on Cyprus’ National Health Service.

This is a completely new service that has been in preparation for a number of years, including massive business and structural changes.

This guide will provide you with all the information you need, as an expat to access the health service.

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