Payroll System

Cyprus has an attractive payroll system with Euro 19,500 tax free income, the largest in the EU and low Social Insurance Contribution cost for the employer of only 12% additional cost to the company. Together with the “First Employment in the Republic” rules Cyprus becomes very attractive for its low payroll cost.

During 2020 the National Health Care System (GESY or NHS) for employers is 2.90% and for employees 1.70%.

Together with the NHS the total employment cost becomes 14.90%

Employment Tax Thresholds

19,500 0% 
19,500 28,000 20% 
28,000 36,300 25% 
36,300 60,000 30% 
over 60,000