Cyprus GeSY contributions: the 2.65% that survives everything
The one Cyprus charge on dividends that non-dom status does not touch, and how big it actually gets.
Last verified 2026-10-22Next review 2027-01-224 official sources
Whether Cyprus works for you depends on how you earnTalk it through
Cyprus GeSY contributions are the charge that survives every structure. They follow tax residence rather than domicile, so a non-domiciled resident who pays no income tax and no defence contribution on dividends still pays 2.65% on them, up to a cap of EUR 4,770 a year.
Cyprus GeSY contributions: the rates
| Income or payer | Rate |
|---|---|
| Dividends, interest, rent | 2.65% |
| Employee | 2.65% |
| Employer, on the same salary | 2.65% |
| Self-employed | 4% |
Contributions stop once annual income reaches EUR 180,000 per person. On dividends alone that puts the maximum at 2.65% of EUR 180,000, which is EUR 4,770 for the year, however large the dividend is.
Two honest caveats. First, these percentages come from a secondary tax source, reviewed in August 2026, rather than from the Health Insurance Organisation's own pages, which we could not read when writing this. Second, whether the EUR 180,000 cap is a single cap across salary and dividends together, or applies separately, is reported both ways by Cyprus advisers and we have not resolved it. If your salary alone approaches the ceiling, that question is worth an adviser's answer rather than ours.
Cyprus special defence contribution: the one non-dom does remove
Set the health contribution next to the Special Defence Contribution and the regime becomes clear. The defence contribution is charged on individuals who are Cyprus tax resident and domiciled in Cyprus. Rates from 2026:
| Income | Domiciled resident | Non-domiciled resident |
|---|---|---|
| Dividends | 5% | 0% |
| Dividends out of profits up to 2025, received to 31 Dec 2031 | 17% | 0% |
| Interest | 17% | 0% |
| Rent | abolished from 2026 | abolished from 2026 |
The dividend rate for domiciled residents fell from 17% to 5% in 2026, which narrowed the gap non-dom status creates. On EUR 200,000 of dividends, non-dom status now saves EUR 10,000 a year rather than EUR 34,000. Still worth having, and no longer the whole case for moving.
What the two charges look like together
Take a non-domiciled Cyprus tax resident under the 60-day rule who draws EUR 200,000 of dividends from a Cyprus company. Income tax is nil, because dividends are exempt under section 8(20). The defence contribution is nil, because of domicile. The health contribution is 2.65% on EUR 180,000, so EUR 4,770.
And before any of that, the company paid 15% corporate tax on the profit the dividend came out of. That is the number people leave out when they describe this as a zero-tax arrangement.
This worked example is arithmetic on the rules above and assumes no other income uses the cap. It is not advice on your position, and it has not been reviewed by a Cyprus tax adviser for your facts.
Non-residents
A non-resident pays the health contribution only on Cyprus-source income, and reportedly not on dividends or interest at all. We have that from a secondary summary of a Health Insurance Organisation announcement rather than from the announcement itself, so treat it as likely rather than settled.
Common questions
- What are the Cyprus GeSY contribution rates?
- 2.65% on rental, interest and dividend income; 2.65% for an employee, matched by the employer; 4% for a self-employed person. Contributions are capped once annual income reaches EUR 180,000. These figures come from a secondary tax source rather than from the Health Insurance Organisation directly.
- Does non-dom status remove the health contribution?
- No. The contribution follows tax residence, not domicile. Non-dom status removes the Special Defence Contribution on dividends and interest; the health contribution stays.
- What is the most I can pay on dividends?
- 2.65% of EUR 180,000, which is EUR 4,770 a year, if dividends are the only income using the cap. Whether the cap is shared across salary and dividends is reported both ways by advisers and we have not settled it.
- What would a domiciled resident pay instead?
- The same 2.65%, plus 5% Special Defence Contribution on dividends from 2026. Dividends out of profits up to tax year 2025, received by 31 December 2031, stay at the old 17% rate.
Whether Cyprus works for you depends on how you earn
Where you live is only half of it. We can walk through your position with you, including the cases where Cyprus tax residency does not give the result people expect. This is general information, not tax advice for your circumstances.
Sources
Every legal, fee and procedural statement on this page is taken from the sources below and was checked on 2026-10-22. Where they change, this page changes.
- PwC Worldwide Tax Summaries: Cyprus, individual other taxes (reviewed 4 August 2026) — Health contribution and social insurance rates and ceilings (secondary source)
- Tax Department: Tax Residency / Domicility (gov.cy) — The 183-day and 60-day rules and non-dom status
- Special Contribution for the Defence Law 117(I)/2002, consolidated text (cylaw.org) — Who pays the Special Defence Contribution: residents who are also domiciled in Cyprus
- Law 245(I)/2025 amending the Special Contribution for the Defence Law (cylaw.org) — Deemed domicile after 17 of 20 years, dividend SDC rates and the EUR 250,000 lump-sum option
Related
This page is general information about Cyprus rules as published by the authorities named above. It is not legal or tax advice for your circumstances, and immigration outcomes depend on your nationality, documents and individual case. See our legal and tax information disclaimer.