Working in Cyprus: the minimum wage, the contributions, the relief for newcomers and your diploma

Can you simply go and work in Cyprus as a Dutch citizen? Yes. As an EU citizen you have free access to employment and self-employment, without a work permit. The minimum wage is € 979 gross on hiring and € 1,088 after six months with the same employer. The finding at the source is on the form every employee fills in each year: anyone who lived outside the country before their first job in Cyprus may deduct part of their salary. Twenty percent, up to € 8,550, or half if the salary is above € 55,000. The pitfall is that the deduction doesn't happen automatically: you claim it.

What do you earn, and what comes off?

Item	Employee	Self-employed
Full-time minimum wage	€ 979 on hiring, € 1,088 after 6 months	not applicable
Social insurance	8.8% of your salary, employer also 8.8%, the state 5.2%	16.6% of your income, the state 5.2%
GeSY (healthcare)	2.65% of your salary, employer 2.90%	4.00% of your income
Income tax	0% up to € 22,000, then rising from 20% to 35%	the same
Tax return	by 31 July of the following year	also a provisional assessment, in two instalments in July and December

The minimum wage does not apply to domestic workers, agriculture and livestock farming, the maritime sector and the hotel industry, which has its own decree. If you work part-time, it is calculated pro rata to your hours.

How does the relief for newcomers work?

Form T.D.59A, which every employee fills in each year for their employer, contains a deduction for a first job in Cyprus. You choose one of the variants that fits you: 20 percent of your salary up to a maximum of € 8,550, or 50 percent of your salary if your salary in that tax year is above € 55,000. For the 50 percent there is also an older scheme with a threshold of € 100,000.

Fill in the form, even if you think your employer takes care of it. The deduction is on the form your employer uses for payroll tax. If you don't claim it, it isn't applied. How long the deduction runs and exactly which conditions apply is set out in the tax department's circulars; with a salary above € 55,000, have that checked by a tax adviser.

What do you arrange for a salaried job?

Your employer registers you with the Social Insurance Services no later than a day before your first working day, via the Ergani system. That gives you your social insurance number. Then, within four months of arrival, you apply for your yellow slip. For employees, the Migration Department then asks for the signed employer part of the form, proof of registration with social insurance and a statement of contributions showing your last employer and salary. The order and the numbers are in the Cypriot numbers.

If you stay insured in the Netherlands, for example because your employer posts you, you hand in the A1 form for the yellow slip, plus health insurance covering hospital care, outpatient care and the transport of mortal remains.

And as a self-employed person?

Then you register with social insurance yourself, with a copy of your passport, identity card or ARC; the number usually follows within one to two weeks. You pay the contribution every quarter. For the yellow slip you show proof that you paid the contributions of the last four months. You need a tax number and file a return every year, even if you earn little. You must register for VAT as soon as your turnover over twelve months exceeds € 15,600; the standard rate is 19 percent.

Will your diploma be recognised?

That depends on your profession. For a profession that is not regulated in Cyprus, you don't need formal recognition. If you want official recognition of a higher education diploma, you go to KYSATS, the Cypriot recognition body. Applications can only be made on Mondays and Tuesdays, by appointment in Nicosia. The evaluation costs € 85.43 per diploma, the certificate of recognition € 34.17. Documents in a language other than Greek or English must be officially translated.

For a regulated profession you apply for recognition to the competent authority for that profession. It must acknowledge receipt within a month and decide within three months. For doctors, nurses, midwives, dentists, pharmacists, architects and vets automatic recognition applies, but even then you wait for permission before you start.

What if you keep working for a Dutch employer?

Then the question is where you do the work. Under the tax treaty between the Netherlands and Cyprus, salary is taxed in the country where you live, unless you exercise the work in the other country. If you live in Cyprus and work from home in Cyprus, Cyprus taxes it. If you work part of the time in the Netherlands, the Netherlands may tax that part. Social insurance follows its own European rules; that is what the A1 form is for. Have both arranged in advance, because they don't move with you automatically. How that fits into your route is in the route to Cyprus.

In Vertrekklaar this is phase 5 of 5 of the journey, step 5.2: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Cyprus or go straight to step 5.2 in the open plan.