General Healthcare System (GHS) Contribution Increase

As per the National Health System Law of 2001 89(I)/2001 and as amended in 2017, a national health system was introduced in Cyprus aiming to provide to the population equal access to a holistic health care system.

Contributions to the GHS are deductible from the employer’s taxable income and of the individuals’ taxable income. The maximum annual deduction for individuals was increased from 1/6th to 1/5th of their taxable income effective from 01.01.2019.

Non-domiciled individuals are not exempt from GHS contributions.

Non-Cyprus tax residents are subject to GHS contributions only in case they are receiving rental income from properties situated in Cyprus; any profits; other benefits or employment exercised in the Republic.

Contributions relating to the implementation of the General Healthcare System (GHS) started on 1 March 2019, and has been increased on 1 March 2020 as per the table below:

Contribution rates:

Contributors Categories As of
01.03.2019 –
As of
Employees (Public and Private Sector) 1,70% 2,65% On their salaries
Employers (Including the State as an
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,
1,70% 2,65% On their income
Government Officials 1,70% 2,65% On their remuneration
Persons responsible for the payment of remuneration to
Government Officials
1,85% 2,90% On the remuneration of the Government Official

The General Healthcare System Contributions are only payable by Individuals and came into effect as from 1 March 2019. They are capped at annual income of €180,000.


At IBCCS TAX we assist our clients to submit and pay their contribution to the Social Insurance (SI) or the tax department and advise on any additional requirement and / or actions in order to efficiently settle their relevant obligations.

We are also happy to assist with setting-up a tax structure in order to eliminate any potential tax liability and maximise future tax gains. For further enquiries, please contact us by email on [email protected] or call our office in Cyprus on +357 222 58 777.