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 or call our office in Cyprus on +357 222 58 777.