When will GESY rates next change?

The HIO has indicated that rates are stable through at least 2032, based on the ILO actuarial study published in early 2025. No rate change has been announced or scheduled.

Do Non-Dom residents pay GESY on dividends?

Yes. The Non-Dom exemption covers SDC only. GESY contributions are due on dividend income at 2.65%, up to the EUR 180,000 annual cap. This is a common point of confusion for new arrivals in Cyprus.

Is there a maximum annual GESY contribution?

Yes. The income base for GESY contributions is capped at EUR 180,000 per person per year. The resulting maximum annual contributions are EUR 4,770 for employees, EUR 5,220 for employers per employee, and EUR 7,200 for self-employed individuals.

Does GESY apply to pension income received from abroad?

Yes. Pensioners resident in Cyprus pay GESY at 2.65% on their pension income, including pensions received from foreign sources, subject to the EUR 180,000 annual cap.

What does GESY cover?

GESY provides access to the public healthcare system in Cyprus: GP consultations, specialist referrals, laboratory tests, hospitalisations, and pharmaceutical coverage. Both public hospitals and registered private providers participate in the system.

How does the EUR 180,000 cap work for mixed income?

The cap is cumulative. For example, if someone earns EUR 100,000 in salary and EUR 100,000 in dividends, GESY applies to the full EUR 100,000 salary plus EUR 80,000 of dividends to reach the EUR 180,000 cap. The remaining EUR 20,000 of dividends is not subject to GESY.

GESY Rates 2025-2026: No Changes, EUR 707M Reserve, and What Non-Doms Actually Pay

May 10, 2025

Tax Updates

Read time: 3 minutes

Miriam Alonso

The Cyprus General Healthcare System (GESY) reported a surplus of EUR 113 million for 2024, and the Health Insurance Organisation (HIO) has confirmed that contribution rates will remain unchanged. An actuarial study completed by the International Labour Organisation (ILO) in early 2025 projects that the fund remains adequately reserved through 2032 without any rate increases.

Current GESY Contribution Rates

GESY rates have not changed since the system reached full implementation on 1 March 2020. The current rates, applied to income up to an annual cap of EUR 180,000, are:

Employees: 2.65% of gross salary.
Employers: 2.90% of the employee's gross salary.
Self-employed individuals: 4.00% of taxable income.
Pensioners: 2.65% of pension income.
Rental, interest, and dividend income: 2.65% of gross income.

The 2024 Surplus

GESY reported total revenues of EUR 1.839 billion for 2024 against total expenditure of EUR 1.726 billion, generating a surplus of EUR 113 million for the year. The accumulated reserve at 31 December 2024 stands at EUR 707 million, equivalent to approximately 4.6 months of payments. The HIO has described the reserve levels as 'very satisfactory across all scenarios' in the ILO study.

No Rate Changes Through 2032

Following the ILO actuarial review completed in early 2025, the HIO formally confirmed that no rate increase is necessary for the foreseeable future. The study covers projections through 2032 under multiple economic scenarios, and all scenarios show the fund remaining financially sound at current contribution levels.

What Non-Dom Residents Pay on Dividends

Non-Dom status in Cyprus exempts the holder from Special Defence Contribution (SDC) on dividend and interest income. However, GESY is a separate contribution system and the Non-Dom exemption does not cover it. Non-Dom residents who receive dividends pay GESY at the standard rate of 2.65%, up to the annual income cap of EUR 180,000. On EUR 180,000 of dividend income, the maximum GESY contribution is EUR 4,770 per year.

This is a common area of confusion for new arrivals. The effective tax burden for a Non-Dom on dividend income from a Cyprus company is 2.65% GESY only - not zero. The SDC exemption removes the 17% (or new 5%) charge, but GESY remains.

The Annual Income Cap

The EUR 180,000 annual income cap applies to the aggregate of all income types subject to GESY for a given individual. Employment income, self-employment income, pension, rental, dividends, and interest all count toward the same ceiling. Once total income reaches EUR 180,000, no further GESY contributions are owed for that year.

Source: GESY.org.cy official rates; Cyprus Mail, 3 May 2025 - GESY surplus report; PwC Worldwide Tax Summaries Cyprus.