Response to question regarding GESY ENTITLEMENT AND TAX
We would like to inform you that any person that resides in the areas that are controlled by the Republic of Cyprus, you are a GHS beneficiary if:
a) you are employed, or
b) you have acquired permanent residence status (MEU3), or
c) you have been granted refugee or supplementary protection status, or
d) you are a member of the family of a beneficiary or
e) you are insured in another EU Member State.
If you fulfil one of the following criteria, then you will be able to enroll to the GHS as beneficiary and receive all relevant services.
We would like to inform you that the obligation of paying contribution for the GHS is independent from the right of being a beneficiary and every person that receives an income from Cyprus or abroad is obligated to contribute for the GHS.
The main GHS source of financing is contributions. The payment of the contributions for the first phase started on 1 March 2019 and the full implementation started on 1 March 2020.
The Contributors' Categories are:
Employees
Employers
State
Self-employed
Pensioners
Income-earners
Government Officials
Persons responsible for the payment of remuneration to Government Officials.
The contribution rates for each category of contributors as they have been set by the General Healthcare System (Amending) Law of 2017 are the following:
Table: Contribution rates
Contributors Categories
First Phase (As of 1/3/2019-28/2/2020)
Full Implementation(As of 1/3/2020)
Explanation
Employees (Public and Private Sector)
1,70%
2,65%
On their salaries
Employers (Including the State as an Employer)
1,85%
2,90%
On the salaries of every person employed by them
State
1,65%
4,70%
On the salaries of the employees, the remuneration of the self-employed and officials and on pensions
Self-employed
2,55%
4,00%
On their remuneration
Pensioners
1,70%
2,65%
On their pension
Income earners (e.g. rent, interest, dividends)
1,70%
2,65%
On their income
Government Officials
1,70%
2,65%
On their remuneration
Persons responsible for the payment of remuneration to Goverment Officials
1,85%
2,90%
On the remuneration of the Government Official
For every natural person, the total maximum annual amount on which contributions will be calculated is €180,000.
In case that the natural person is not a tax resident of Cyprus, he/she will pay contributions only for the income, earnings and pensions that derive from the Republic of Cyprus, excluding dividends and interest.
Thank you for contacting us, we remain at your disposal.
GHS Contact Centre
Health Insurance Organisation
So if you are early retired, not on state pension and thus no Form S1 and are permanent residents and tax resident you must still pay the GESY tax at the prevailing rate.
If you are early retired and temporary resident and tax resident then you must still pay the GESY tax and not be able to join or benefit from GESY ..and still have to have pay for and prove private healthcare cover whilst temporarily resident.
