Self-Employed individuals in Cyprus: A quick guide

How to register in 2 steps:

The first step to becoming self-employed in Cyprus is to register with the Social Insurance Services (SIS). You can do this by filling out a form in Greek language at any local SIS office at Cyprus. Once you have registered with SIS (within 1-2 weeks), you will be issued a social security number.

The second step is to obtain an individual tax number (TIC). You can apply for a TIC by emailing to the tax office located in your residential area.

Social insurance contributions and taxation:

• Social Insurance Contribution
  • Rate: 15,6% in 2023, 16.6% in 2024-2029;
  • Paid quarterly through SISnet web portal;
  • Calculated automatically based on imputed income (general rule). Minimum weekly amount of insurable earnings is established by the Government of Cyprus every year for different industries.

For example, in 2024 weekly imputed income for estate agents amounts to EUR 896.99, for teaching professionals, accountants, lawyers, medical doctors with experience less than 10 years – EUR 443.45, for builders and other professions related to construction industry – EUR 544.24.

Self-Employed individuals are allowed to calculate social insurance contributions based on actual income (instead of imputed income) only if it is approved by the local SIS office.

• State Medical Insurance Program (GESY)
  • Rate: 4%
  • Paid quarterly through SISnet web portal along with Social Insurance Contributions;
  • Calculated based on imputed income. However, if the actual income exceeds an imputed income, additional GESY contribution should be paid from positive difference between imputed income and actual income.
• Personal Income Tax
  • Progressive rates: 0%-35%
  • Payments due by July 31 and December 31;
  • Annual tax declaration via TAXISnet by September 30;
  • Calculated based on actual income;
  • If annual income exceeds €70,000, audited financial statements should be submitted.
• VAT (for actual income > €15,600 per calendar year)
  • Rates: 0-19%
  • Quarterly declaration and payment through TAXISnet web portal;
  • Payment due not later than the 10th of May, August, November, and February.

Things to consider before registration as Self-Employed individual in Cyprus

• Explore any specific regulations and licenses that may apply to your industry.
• If Cyprus is not your tax residence country, consider whether the income tax paid by you as a self-employed individual in Cyprus can be offset against income taxes to be paid in your tax residence country. Will double tax treaty rules be applied to tax and social insurance payments made by the self-employed in Cyprus?
• What are the labor regulations and employment considerations for hiring staff?
• What are the responsibilities and liabilities for self-employed individuals in Cyprus?

If you have any questions or require assistance with self-employed registration or the analysis of matters related to self-employment in Cyprus, please do not hesitate to reach out to us. Our specialists will be pleased to provide the necessary services.

 Contact person: Uliana Gagina