The Cyprus National Health Insurance System (NHIS) officially goes into effect in 2019. It aims to transform the existing public healthcare system, and provide every Cypriot citizen with lifelong, equal and unhindered access to quality healthcare services.

How will the NHIS be funded?

For the implementation of the NHIS, a special fund administered by the Health Insurance Organization (HIO) was established for the compulsory contributions of people in the following categories:

  • Employees
  • Employers
  • State
  • Self-employed persons
  • Pensioners
  • Other income earners
  • Government Officials
  • Persons responsible for the payment of remuneration to Government Officials

Stages of Implementation

According to the General Healthcare System (Amending) Law of 2017, the NHIS is to be implemented in two stages:

  • Employer and employee contributions for the first phase of the NHIS commenced in 1st March 2019, and this will provide for outpatient healthcare beginning on 1st June 2019.
  • The second and final stage for full implementation of the NHIS will commence 1st March 2020, and this will cover all remaining healthcare services (inpatient and outpatient).

Contributions to NHIS per Category


Applicable on

Phase 1 (1 March 2019)

Phase 2 (1 March 2020)

Employers (Including State)

Employee earnings



Employees (Public and Private Sector)

Own earnings



State Fund

Earnings of employees, self-employed persons, officials, and pensions



Self-employed persons

Own income







Other income earners

Income includes rental, interest, dividends, etc.



Government Officials

Officials’ Remuneration



Persons responsible for the payment of remuneration to Government Officials

Officials’ Remuneration





It is noted that for every individual, the total amount of annual income on which contributions are paid is 180,000EUR.

In the case that individuals are not tax residents of Cyprus, they will contribute only from the income, earnings, and pensions derived from the Republic of Cyprus, excluding dividends and interest.

Methods of Payment:

  • Employees:

Employees’ contributions to NHIS will be deducted by the employer from the total earnings of the employees (as defined in the Social Insurance Law) and, together with the employers’ contributions, will be paid to the Social Insurance Fund, as in the case of the respective contributions to the Social Insurance Fund.

  • Self-employed persons:

Self-employed persons’ contributions to NHIS on the sums for insurable earnings provided for contributions to the Social Insurance Fund are paid to the Social Insurance Fund, whereas contributions on income of self-employed persons beyond these sums are paid to the Tax Commissioner.

  • Pensioners:

Pensioners’ contributions are deducted by the person paying the pensions and paid to the Tax Commissioner, except in cases where the pensions are paid to the pensioners by the Social Insurance Fund, in which case they are deducted from the pension and paid to NHIS. Contributions on pensions received from abroad are paid to the Tax Commissioner by the pensioners themselves.

  • Government Officials:

NHIS contributions on officials’ remuneration are deducted by the Republic or the person paying the remuneration and are paid to the Tax Commissioner.

  • Other Income Earners

NHIS contributions on other sources of income, such as dividends or interest received by an individual from sources within Cyprus, are deducted by the payer (as in the case of the special defense contribution on the relevant income) and paid to the Tax Commissioner.

  • Rental Income

NHIS contributions on rental income received by an individual from sources within Cyprus are deducted by the payer, provided that the payer is a company, partnership, the Republic of Cyprus or a local authority (as in the case of special defense contribution) and paid to the Tax Commissioner.

  • Income from abroad

NHIS contributions on income from abroad or on any other income not mentioned above, are paid by the individual who receives them to the Tax Commissioner.

For more information about the contributions to the NHIS and how this will affect you, get in touch with the team of professionals at Auditnet, who can help you navigate the start of the NHIS Contributions.