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CYPRUS: Introduction of the General Healthcare System (GHS)

April 2019 - Tax & Private Client. Legal Developments by Stelios Americanos & Co.

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Cyprus has introduced the General Healthcare System (GHS) that will cover its entire population. The GHS is a modern, patient-centric healthcare system with the aim of delivering equal and quality healthcare services to beneficiaries.

The Beneficiaries of the GHS are:

-          Citizens of the Republic of Cyprus

-          European Union (EU) citizens who are working or have a permanent residence permit in the Republic of Cyprus

-          Non-EU citizens who have permanent residence permit in the Republic of Cyprus or have the right of equal treatment in the social insurance sectors.

-          Refugees and Persons with status of supplementary protection.

-          Beneficiaries' Dependents of the above mentioned categories.

The first stage will come to force on 1 June 2019 with the introduction of outpatient healthcare, which includes the provision of healthcare services by personal doctors and outpatient specialists, pharmacist and laboratories.

The second and final stage will come to force on 1 June 2020 and will introduced inpatient healthcare and services, services offered by allied health professionals (clinical dieticians, occupational therapists, speech pathologies, physiotherapists, and clinical psychologists), nurses and midwifes, the accident and emergency departments, ambulance services and medical rehabilitation services.

The Contributors' categories to GHS are:

-          Employees

-          Employers

-          State

-          Self-employed

-          Pensioners

-          Individuals Income-earners (i.e. Director or other fees, rents, interests, dividends) that are tax residents of Cyprus irrespective of being domiciled or not

-          Government Officials

-          Persons responsible for the payment of remuneration to Government Officials

The contribution rates for each of the above categories are:

Contributors Categories

First Phase (1/3/2019-28/2/2020)

Final Phase (As of 1/3/2020)

Employees

1,70%

2,65%

Employers

1,85%

2,90%

State

1,65%

4,70%

Self-employed

2,55%

4,00%

Pensioners

1,70%

2,65%

Individuals Income earners (i.e. rent, interest, dividends) *

1,70%

2,65%

Government Officials

1,70%

2,65%

Persons responsible for the payment of remuneration to Government Officials

1,85%

2,90%

 

* This applies to all tax resident individuals irrespective if they are domiciled or not.

Maximum amount of Income where GHS is calculated is €180.000 per year.