Cyprus tax resident but non-domiciled individuals are not exempted from the GHS contributions. The income of such individuals is subject to GHS contribution. Details of what is meant by the term non-domiciled individual you can find in our previous article.
We outline below the most common income of non-domiciled individuals.
- Rental income (worldwide)
- Interest
- Dividend income from Cyprus Company
- Deemed Dividend (press here to learn more about Deemed Dividends)
- Dividend income from abroad
- Interest income (worldwide)
- any profits or other benefits received from the holding an office or salaried services in Cyprus and abroad
- profit from the disposal of securities, if such profit is considered to be trading profit
- any pension received from overseas sources
The exemption of the non-domiciled individuals on interest, dividends and rental income under the Special Defense Law are not applied for GHS purposes.
Below is the table with the GHS Contributions Percentages:
The total maximum annual amount on which contributions are payable is the amount of €180,000.
The cumulative order to calculate the amount of €180,000 is as follows:
- Employment income
- Self-employment income
- Officer income
- Pensions
- Other Income (e.g. rents, dividends, interest)
Example 1
Mr John is a non-domiciled individual. He is a shareholder/Director in ABC Ltd (Cyprus company) and also, he is a shareholder in UAE company:
Assumptions:
- He is the owner of an apartment in Larnaca
- During 2020 he had the below income:
Solution 1
Year: 2020
Example 2 (Deemed Dividends)
Mr John is a non-domiciled individual and he is a shareholder and Director in ABC Ltd (Cyprus company).
Assumptions:
- ABC Ltd Profits after tax for the year 2018 is €100.000.
- No actual dividends issued during the years 2018, 2019 and 2020 from the profits of 2018.
- During 2020 he had the below income:
Solution 2
Year: 2020
