CYPRUS TAX PROVISIONS 2019 by AMP Andreas Pantazis (Estate Agents) Ltd

AMP ANDREAS PANTAZIS Ε.Π.Ε AMP ANDREAS PANTAZIS (ESTATE AGENTS) LTD Εγκεκριμένοι Εκτιμητές – Σύμβουλοι Ακινήτων – Εγγεγραμμένοι Κτηματομεσίτες Chartered Surveyors – Property Consultants – Registered Real Estate Agents

CYPRUS TAX PROVISIONS 2019

22676423

22673110

info@ampantazis .com

www.ampantazis.com

POLITIA BUSINESS CENTRE, 23 ALKEOS STR., OFFICE SUITE 302, 2404 ENGOMI, P.O.BOX 27178, 1642 NICOSIA 0

CONTENTS PAGE

1 PERSONAL INCOME TAX ……………………………………………..... 2 CORPORATION TAX …………………………………………................ 2.1 CORPORATE TAX DEDUCTIONS FOR EXPENSES …………………..... 2.2 LOSSES CARRIED FORW ARD …………………………………………..... 2.3 ANNUAL W EAR AND TEAR CAPITAL ALLOW ANCES ………………...... 3 CAPITAL GAINS TAX …………………........................................... 3.1 EXEMPTIONS ……………………………………………………………....... 3.2 DETERMINATION OF CAPITAL GAIN …………………………............... 3.3 LIFETIME EXEMPTIONS ……………….……….…..............................

4 VALUE ADDED TAX (V.A.T) ………….......................................... 4.1 LEGISLATION RATES ………………………………............................. 4.2 EXEMPTIONS …………………………....…………………………............. 4.3 VAT ON IMMOVABLE PROPERTY …………………………....…............. 4.3.1 I MPOSITION OF V.A.T 19%............................................................... 4.3.2 I MPOSITION OF THE REDUCED RATE OF 5% ON THE ACQUISITION AND/OR CONSTRUCTION OF RESIDENCES FOR USE AS THE

PRIMARY AND PERMANENT PLACE OF RESIDENCE..................

2 3 4 4 5 6 6 7 7 8 8 8 8 8 9

4.3.3 I MPOSITION OF THE REDUCED RATE OF 5% ON THE RENOVATION

5.1 TAX RATES …………………………………………………………............. 5.2 EXEMPTIONS …………………………………………..…........................

10 10 11 11 13 13 13

6 TRANSFER FEES - LAND AND SURVEYS DEPARTMENT ........

AND REPAI R OF PRIVATE RESIDENCES..........................................

4.3.4 GRANT FOR ACQUISITION OF FIRST RESIDENCE.................... 4.4 REGISTRATION …………………………….…………….………….......... . 4.5 VAT DECLARATION - PAYMENT/REFUND OF VAT ………..................

5 IMMOVABLE PROPERTY TAX………………....................................

7 STAMP DUTY …………………………………………………………………. 8 SOCIAL INSURANCE …………….................................................. 9 NATIONAL HEALTH SYSTEM ..................................................... 10 CAPITAL DUTY …………….......................................................... 10.1 UPON INCORPORATION OF A CYPRUS COMPANY……............. 10.2 UPON SUBSEQUENT INCREASES……………………….........…….. 11 2019 TAX DIARY ……………………….……….…………………….…..... 11.1 INTEREST AND PENALTIES.................... .................................

15 16 17 18 18 18 19 20

1. PERSONAL INCOME TAX The following income tax rates apply to individuals: CH ARGE ABLE INCOME FOR THE TAX YE AR

TAX R ATE

ACCUMUL ATED TAX

€

First 19.500

Nil

From 19.501 - to 28.000

1.700

From 28.001 - to 36.300

3.775

From 36.301 - to 60.000

10.885

Over 60.000

An individual is considered as a tax resident in Cyprus if he spends in Cyprus more than 183 days in any one calendar year. With effect as from 1st January 2017, an individual may also be considered tax resident in Cyprus if (s)he satisfies the 60 day rule. The 60-day rule applies to individuals who in the relevant tax year: • do not reside in any other single state for a period exceeding 183 days in aggregate, and • reside in Cyprus for at least 60 days, and • are not tax residents in any other state, and • have other defined Cyprus ties. To satisfy this condition the individual must carry out any business in Cyprus and/or be employed in Cyprus and/or hold an office (director) of a company tax resident in Cyprus at any time in the tax year, provided that such is not terminated during the tax year. Further the individual must maintain in the tax year a permanent residential property in Cyprus which is either owned or rented by him/her. For the purposes of calculating both the 183 days rule and the 60 days rule, days in and out of Cyprus are calculated as follows: • the day of departure from Cyprus counts as a day of residence outside Cyprus • the day of arrival in Cyprus counts as a day of residence in Cyprus • arrival and departure from Cyprus in the same day counts as one day of residence in Cyprus • departure and arrival in Cyprus in the same day counts as one day of residence outside Cyprus • Foreign taxes paid can be credited against the personal income tax liability. • Foreign pension is taxed at the rate of 5%. An annual exemption of €3.420 is granted. Cyprus source widow(er)’s pension is taxed at the flat rate of 20% on amounts over €19.500.In both cases the taxpayer can, however, elect to be taxed at the normal tax rates and bands set out above and is a choice which may be made year - on - year.

2. CORPORATION TAX All Cyprus tax resident companies are taxed on their income accrued or derived from all chargeable sources in Cyprus and abroad. A company is a resident of Cyprus if it is managed and controlled in Cyprus. A non- Cyprus tax resident company is taxed on income accrued or derived from a business activity which is carried out through a permanent establishment in Cyprus and on certain income arising from sources in Cyprus. Foreign taxes paid can be credited against the corporation tax liability. The corporation tax rate for all companies is 12,5%.

TYPE OF INCOME

EXEM PTION LIMI T

Profit from the sale of securities

W hole amount

Dividends (excluding as from 1st January 2016 dividends which are tax deductible for the paying company)

W hole amount (1)

Interest not arising from the ordinary activities or closely related to the ordinary activities of the company (2)

W hole amount (3)

Profits of a permanent establishment abroad under certain conditions

W hole amount (4)

Gains relating to foreign exchange differences (forex) with the exception of forex arising from trading in foreign currencies and related derivatives.

W hole amount

NOTES: 1. Such dividend income may be subject to Special Contribution for Defence. 2. All the interest income of Collective Investment Schemes is considered to be arising from the ordinary activities or closely related to the ordinary activities of the Scheme. 3. Such interest income is subject to Special Defence Contribution. 4. With effect from 1st July 2016, taxpayers may elect to tax the profits earned by foreign permanent establishments with a tax credit for foreign taxes incurred on those foreign permanent establishment profits. Transitional rules apply in certain cases on the granting of foreign tax credits where a foreign permanent establishment was previously exempt and subsequently a taxpayer elects to be subject to tax on the profits of the foreign permanent establishment.

2.1 CORPORATE TAX DEDUCTIONS FOR EXPENSES Generally expenses incurred wholly and exclusively in earning taxable income and supported by documentary evidence are deductible for corporate tax purposes.

2.2 LOSSES CARRIED FORW ARD The tax loss incurred during a tax year and which cannot be set off against other income, is carried forward subject to conditions and set off against the profits of the next five years. The current year loss of one company can be set off against the profit of another, subject to conditions, provided the companies are Cyprus tax resident companies of a group (1). Group is defined as: â&#x20AC;˘

One Cyprus tax resident company holding directly or indirectly at least 75% of the voting shares or another Cyprus tax resident company.

â&#x20AC;˘

Both of the companies are at least 75% (voting shares) held, directly or indirectly, by a third company.

As from 1st January 2015 interposition of a non - Cyprus tax resident company or companies will not affect the eligibility for group relief as long as such company or companies is tax resident of either an EU country or in a country with which Cyprus has a double tax treaty or an exchange of information agreement (bilateral or multilateral). A partnership or a sole trader transferring a business into a company can carry forward tax losses into the company for future utilization. Losses from a permanent establishment abroad can be set off with profits of the company in Cyprus. Subsequent profits of an exempt permanent establishment abroad are taxable up to the amount of losses allowed. N . B : As from 1 January 2015 a Cyprus tax resident company may also claim the tax losses of a group company which is tax resident in another EU country, provided such EU Company firstly exhausts all possibilities available to utilize its losses in its country of residence or in the country of any intermediary EU holding company.

2.3 ANNUAL WEAR AND TEAR CAPITAL ALLOWANCES The following allowances, given as a percentage on the cost of acquisition, are deducted from the chargeable income: VEHI CLES AND M EANS OF TR ANSPORTATION

Commercial motor vehicles

Motor cycles Excavators, tractors, bulldozers, self-propelled loaders and drums for petrol companies Armored Motor Vehicles (e.g. used by Security Services) Specialized Machinery for the laying of Railroads New Airplanes

New Helicopters

25 20 20 8 8

Sailing vessels

4,5

Motor Yachts

Steamers, tugs and fishing boats

Ship motor launches

12,5

New cargo vessels

New passenger vessels

FIXED ASSETS

Plant and Machinery

Plant and Machinery (1)

Furniture and fittings

Industrial carpets

Boreholes Machinery and tools used in an agricultural business Buildings

10 15 %

Commercial Buildings

Industrial, agricultural and hotel buildings (2)

Flats

Metallic Greenhouse structure

Other

10 33 1/3 %

Televisions and Videos

Computer hardware and operating systems

20 33 1/3

W ooden greenhouse structure

Application Software Expenditure on application software less than €1.709, is written off in the year of acquisition W ind Power Generators Photovoltaic systems Tools in general

Ν . Β i ) : Plant and machinery and nonprivate motor vehicles acquired during the tax years 2012- 2018 are eligible to accelerated tax depreciation at the rate of 20% (excluding such assets which are already eligible for a higher annual tax rate of tax depreciation).

Ν . Β i i ) : In the case of industrial and hotel buildings acquired during the same tax years i.e. 20122018, an accelerated tax depreciation at the rate of 7% per annum is applicable.

Ν . Β i i i ) : The rates stated for buildings are for new buildings. Rates are amended in the case of second – hand buildings.

10 10 33 1/3 5

3. CAPITAL GAINS TAX Capital Gains Tax (CGT) is imposed (when the disposal is not subject to income tax) at the rate of 20% on gains from the disposal of immovable property situated in Cyprus including gains from the disposal of shares in companies which own such immovable property directly, excluding shares listed on any recognized stock exchange. Furthermore as from 17.12.2015 shares of companies which indirectly own immovable property situated in Cyprus and at least 50% of the market value of the said shares derive from such immovable property are subject to CGT. 3.1 EXEMPTIONS The following disposals of immovable property are not subject to Capital Gains Tax: • Lands or land with buildings acquired between 16th July 2015 and 31st December 2016 are exempt from CGT (subject to certain conditions) upon their disposal. • Transfers arising on death. • Gifts made from parent to child or between husband and wife or between up to third degree relatives. • Gifts to a company where the company’s shareholders are members of the donor’s family and the shareholders continue to be members of the family for five years after the day of the transfer. • Gifts by a family company to its shareholders, provided such property was originally acquired by the company by way of gift provided that it is kept by the donee for at least three years. • Transfers as a result of reorganizations. • Gifts to charities and the Government and donations to political parties. • Compulsory Acquisitions. • Exchange or disposal of immovable property under the Agricultural Land (Consolidation) Laws. • Exchange of properties, provided that he whole of the gain made on the exchange has been used to acquire the other property. The gain that is not taxable is deduced from the cost of the new property, i.e. the payment of tax is deferred until the disposal of the new property. EX AMPLE

€

Sale price in October 2013

600.000

Cost of acquisition as at 1 January 1991

(90.000)

Indexation allowance January 1991 to October 2013 €90.000 @ 227,74/119,43)€90.000

(81.620)

€

Capital gain

428.380

Legal and estate agency expenses

(5.000)

Taxable Capital Gain

423.380

Capital Gains Tax (20%)

84.676 6

3.2 DETERMINATION OF CAPITAL GAIN Liability is confined to gains accruing since 1st January 1980. The costs that are deducted from gross proceeds on the disposal of immovable property are its market value as at 1st January 1980 or, the cost of acquisition and improvements of the property if made after 1st January 1980, as adjusted for inflation up to the date of disposal on the basis of the consumer price index in Cyprus. Expenses that are related to the acquisition and disposal of immovable property are also deducted, subject to certain conditions e.g. estate agency fees, transfer fees, legal expenses etc.

3.3 LIFETIME EXEMPTIONS INDIVIDUALS CAN DEDUCT FROM THE CAPITAL G AIN THE FOLLOWING:

€

Disposal of private residence (subject to certain conditions)

85.430

Disposal of agricultural land by a farmer

25.629

Any other disposal

17.086

N . B : The above exemptions are lifetime exemptions subject to an overall lifetime maximum of €85.430.

4 . VALU E ADD ED T AX ( V.A.T) 4.1 LEGISLATION RATES

4.3 VAT ON PROPERTY

The legislation provides for the following four tax rates:

4.3.1 IMPOSITION OF VAT 19% (a) Sale of non-developed buildable land

As from 2nd January 2018, VAT at 19% is

• Zero rate (0%).

imposed on the transfer of non-developed

• Reduced rate of five per cent (5%).

buildable land. Specifically, VAT is imposed

• Reduced rate of nine per cent (8% up to 12 January 2014) • Standard rate 19% as from 13th January 2014 (15% up to 29th February 2012, 17% from 1st March 2012 up to 13th January 2013, 18% from 14th January 2013 to 12th January 2014).

on the transfer of ownership, transfer of indivisible land share, transfer of ownership under a sale agreement or an agreement which

provides

that

the

ownership will be transferred on a future date or by virtue of a leasing agreement with

N.B: The difference between zero

specifically

the

right

buy

non-developed

buildable land which is intended for the

rate and exempt supplies is that

construction of one or more structures in

businesses that make exempt supplies are not entitled to recover

the course of carrying out a business

the VAT charged on their purchases,

activity.

expenses or imports.

includes all non-developed land plots that

Certain goods or services are exempt from

land

more structures. In the above definition are included

VAT such as:

non-developed

buildable

land

irrespective of whether is covered or not

• The letting of residential buildings. • Most banking and financial services and insurance services. • Most hospital, medical and dental care

from the water supply and cover land plots of all kinds as listed below: • Building sites (οικόπεδα) under construction.

services. • Certain cultural educational and sports activities. • Postal services provided by the national

• Building Sites (οικόπεδα) with a • Building sites with title deeds. No VAT will be imposed on the purchase or

postal authority. • Lottery tickets and betting coupons for

sale of land located in livestock zones or in areas

football and horse racing. services

• Completed building sites (οικόπεδα). certificate of final approval.

• Supply of second-hand buildings.

mutual funds.

buildable

are intended for the construction of one or

4.2 EXEMPTIONS

• Management

Non-developed

provided

which

development archaeological

are

not

such

intended

zones

and

for

agricultural/ areas

environmental protection. 8

(b) Leasing of property

the building coefficient, the standard VAT

VAT at the standard rate must be charged on rate is imposed. lease of property when the lessee (tenant) is a taxable person and is engaged in taxable

N.B: The reduced rate is imposed only after obtaining a certified

activities by at least 90%. The lessor has the c o n f i r m a t i o n f r o m t h e T a x right to opt not to impose VAT on the specific C o m m i s s i o n e r . property but this option is irrevocable.

The

eligible

person

must

submit

application on a special form, issued by the Tax Commissioner, which will state that the

As from 2nd January 2018 VAT must be

house will be used as the primary and

accounted under the reverse charge

permanent

provisions on transactions relating to

applicant

transfers of property during the process of loan restructuring and for compulsory

place must

of attach

residence. a

The

number

documents supporting the ownership rights on the property and evidencing the fact that

transfer to the lender.

the property will be used as the primary and

(d) Leases of property which effectively transfer the risks and rewards of property ownership

permanent

place

residence.

The

application must be filed prior to the actual delivery of the residence to the eligible

As from 1st January 2019 property leases

person.

which effectively transfer the risks and

As from 8th June 2012 eligible persons

rewards

are

include residents of non EU Member

considered to be supplies of goods, subject

States, provided that the residence will be

to VAT at the standard rate.

used as their primary and permanent place

4.3.2 IMPOSITION OF THE

of residence in the Republic of Cyprus.

REDUCED RATE OF 5% ON THE ACQUISITION AND/OR CONSTRUCTION OF RESIDENCES FOR USE AS THE PRIMARY AND PERMANENT PLACE OF RESIDENCE

The documents supporting the ownership

The reduced rate of 5% applies to contracts

be used as the primary and permanent

that have been concluded from 1st October

place of residence (copy of telephone,

2011 onwards provided they relate to the

water

acquisition

municipal taxes) must be submitted within

residences to be used as the primary and

six months from the date on which the

permanent place of residence for the next

eligible person acquires possession of the

10 years. The reduced rate of 5% VAT

residence.

applies on the first 200m2 whereas for the

A person who ceases to use the residence

remaining square meters, as determined by

as his primary and permanent place of

property

and/

ownership

construction

of the property must be submitted together with

the

application.

The

documents

supporting the fact that the residence will

supply

electricity

bill

residence before the lapse of the 10 year

the amount of the VAT due, or

period must notify the Tax Commissioner

imprisonment up to 3 years or both.

within thirty days of ceasing to use the residence and pay the difference resulting

4.3.3 IMPOSITION OF THE

standard rate of VAT attributable to the

REDUCED RATE OF 5% ON THE RENOVATION AND REPAIR OF PRIVATE RESIDENCES

remaining period of 10 years for which the

As from 4th December 2015 the renovation

property will not be used as the main and

and repair of old private residences (for

primary place of residence.

which a period of at least three years has

The private residences must be used as the

elapsed from the date of their first use) is

main and permanent place of residence for

subject to VAT at the reduced rate of VAT

a period of 10 years. In addition, persons

of 5%, excluding the value of materials

who have already acquired a residence on

which constitute more than 50% of the

which the reduced VAT rate was imposed,

value of the services.

can re â&#x20AC;&#x201C; apply and acquire a new residence

In addition as from 4th December 2015 the

on which the reduced VAT rate will be

renovation

imposed, irrespective of whether the 10

residences (for which a period of at least

year

the

three years has elapsed from the date of

residence provided or in the legislation has

their first use) and which are used as the

lapsed or not. A condition for this to apply

place of residence of vulnerable groups or

is that in case the 10 year period of using

residences that are used as the place of

the residence as the main and permanent

residence and which are located in remote

place of residence has not lapsed, the

areas are subject to VAT at the reduced

persons

rate of VAT of 5%.

from the application of the reduced and the

prohibition

must

period

pay

for

back

using

the

Tax

Department the difference in the VAT

and

repair

OF FIRST RESIDENCE

rates

For

the

time

the

private

4.3.4 GRANT FOR ACQUISITION

between the standard and reduced VAT applicable

old

contracts

concluded

30th

acquisition or construction of the residence.

September 2011 for the acquisition and/ or

N.B: Persons who make a false

construction of residences for use as the

statement to benefit from the

primary and permanent place of residence,

reduced rate are required by law to pay the difference of the additional VAT due. Furthermore, the legislation provides that such persons are guilty of a criminal

the eligible person must apply for a grant. The grant is given to eligible persons for the construction, or purchase or transfer of a new residence which is used as the main

offence and, upon conviction, are

and primary place of residence. The

liable to a fine, not exceeding twice

application for the grant is submitted to the Ministry

Finance,

relation 10

residences for which an application has

businesses engaged in the supply of intra-

been submitted for the issue of a planning

community services for which the recipient

permission after 1st May 2004. Persons

must account for VAT under the reverse

entitled to this grant are individuals who are

charge

citizens of the Republic of Cyprus or of any

obligation for VAT registration arises for

other EU Member State,

reside

businesses carrying out economic activities

permanently in the Republic of Cyprus and

from the receipt of services from abroad for

who have reached the age of 18 at the time

which an obligation to account for Cyprus

of application. The grant is given for

VAT under the reverse charge provision

residences, the total covered area of which,

exists subject to the registration threshold

does not exceed 250 m².The level of the

of €15.600 per any consecutive 12 month

grant is limited to 130 m² (extended for

period. No registration threshold exists for

families with four and more children) and

the provision of intra-community supplies of

depends on the type of the property and on

services.

whether the house was constructed or

Exempted products and services, and

purchased.

legislation

disposals of items of capital nature are not

provides that the level of the grant will be

taken into account for determining annual

adjusted annually for the increase in the

turnover

Retail Price Index.

Registration is effected by completing the

4.4 REGISTRATION

appropriate application form.

Registration is compulsory for businesses

4.5 VAT DECLARATION -

with (a) turnover subject to VAT in excess

PAYMENT/REFUND OF VAT

of €15.600 during the 12 preceding months

VAT returns must be submitted quarterly

The

relevant

who

or (b) expected turnover subject to VAT in

provisions.

for

Furthermore

registration

purposes.

and the payment of the VAT must be made

excess of €15.600 within the next 30 days.

by the 10th day of the second month that

Businesses with turnover of less than

follows the month in which the tax period

€15.600 or with supplies that are outside

ends.

the scope of VAT but for which the right to

VAT registered persons have the right to

claim the amount of the related input VAT

request for a different filing period upon

is granted, have the option to register on a

approval of the Commissioner of Taxation.

voluntary basis.

The Commissioner of Taxation also has the

An obligation for registration also arises for

right to request from a taxable person to file

businesses which make acquisition of

his VAT returns for a different period.

goods from other EU Member States in

Where in a quarter input tax is higher than

excess of €10.251, 61 during any calendar

output tax, the difference is refunded or is

year. In addition as from 1st January 2010

transferred to the next VAT quarters.

an obligation for VAT registration arises for

As from 19th February 2013 taxpayers who 11

make a claim for VAT refund will be entitled

for the Tax Department to repay the

to repayment of the principal amounts

refundable amounts is extended by four

together with interest in the event that the

months (i.e. eight months in total) in the

repayment

event

delayed

for

period

that

the

Tax

Commissioner

exceeding four months from the date of the

carrying out an investigation in relation to

submission of the claim. The grace period

the submitted claim.

5 . IMM OVABL E PRO PERT Y T AX Immovable Property Tax has been abolished as from 1st January 2017. Until 2016 Immovable Property Tax was imposed on the market value as at 1st January 1980 and applied to the immovable property owned by the taxpayer on 1st January of each year. As from 1st January 2013, the bands and rates for Immovable Property Tax for properties situated in Cyprus had been revised as per the table below which applied on a per owner basis (not per property). Property owners whose property had a total value of €12.500 or less (on the basis of 1.1.1980 values) were exempt from Immovable Property Tax from 2013 up to 2016.

5.1 TAX RATES Property value

Rate

Accumulated tax

€

First 40.000

240

From 40.001 - to 120.000

880

From 120.001 - to 170.000

1.330

From 170.001 - to 300.000

2.760

From 300.001 - to 500.000

5.360

From 500.001 - to 800.000

9.860

From 800.001 - to 3.000.000

47.260

Over 3.000.000

(as at 1st January 1980) €

5.2 EXEMPTIONS The following, were not subject to Immovable Property Tax: • Schools • Churches and other religious buildings (partly exempt) • Public cemeteries • Public hospitals • Immovable property owned by the Republic • Common use and public places • Foreign embassies and consulates • Property under Turkish occupation • Buildings of charitable organizations • Buildings under a Preservation Order • Agricultural land used in farming or stock breeding, by farmer or stock breeder residing in the area. 13

6. TRANSFER FEES - LAND AND SURVEYS DEPARTMENT The fees charged by the Department of Land and Surveys to the purchaser for transfers of property are as follows: Market Value

Rate

Fee

Accumulated fee

€

First 85.000

2.550

From 85.001 - to 170.000

4.250

6.800

Over 170.000

In the case of free transfers of property the transfer fees are calculated on the value of the property as at 1st January 2013 as follows: •

from parents to children : Nil

•

between spouses : 0,1%

•

between third degree relatives : 0,1%

•

to trustees : €50

Mortgage registration fees are 1% of the current market value. In the case of companies’ reorganizations, transfers of immovable property are not subject to transfer fees or mortgage registration fees. N.B i): If, however, VAT is applicable upon purchasing a property then no transfer fees are payable. N.B ii): The above transfer fees are reduced by 50% in case the purchase of a property is not subject to VAT.

7. STAMP DUTY The following table gives the amount or rate of duty payable on certain documents. Transactions which fall within the scope of reorganizations are exempt from stamp duty and so are documents relating to assets situated outside Cyprus or business affairs that take place outside Cyprus. Nature of documents Contracts with a fixed amount - the first €5.000

-between €5.001 – to €170.000

1,5%o

-above €170.000

2%o*

Contracts without fixed amount

€35

Charterparty

€18

Receipts (if not exempt)-for sums of over €4

7 cents

Cheques

5 cents

Letters of credit

€2

Letters of guarantee:

€4

Bills of exchange (payable within three days, on demand or at sight): Customs declaration documents (depending on document type):

€1 €18 - €35

General Powers of Attorney:

€6

Limited Powers of Attorney:

€2

Certified copies of contracts and documents:

€2

*Capped at a maximum of €20.000.

8. SOCIAL INSURANCE %

* The rate of Social Insurance contributions is applied to a maximum level of emoluments

Employer’s contribution

8,3 *

which

Employee’s contribution

8,3 *

€1.051/monthly €4.554).

Social cohesion fund

2,0**

Redundancy fund

1,2***

Industrial training fund

0,5***

Holiday fund (if not exempt)

8,0***

for

2019

€54.648

(weekly

** Social cohesion fund is calculated on total emoluments and has no maximum level. *** Restricted to the maximum level of emoluments as with the social insurance contributions.

N.B: The rate of 8,3% applies for both the employee and the employee up to 31st December 2023. As from 1st January 2019 the contributions of self-employed persons are 15,6% of their income. Thereafter, the rate will increase by 1% every five years until it reaches 19,6% as from 1st January 2039. The amount of the contributions is subject to a lower and a maximum limit set on an annual basis, depending on the profession or trade of the SelfEmployed Person.

9. NATIONAL HEALTH SYSTEM A national health system has been introduced in Cyprus aimed to provide equal access of the population to a comprehensive health care system as per National Health System Law of 2001 (89(I)/2001 as amended in 2017. Patients will have the option to select a health care provider from the private as well as the public health care sector. Contributions relating to the implementation of the National Health System (NHS) will start from 1st March 2019 and will increase from 1st March 2020 as per the table below: Ref