# Monthly deductions



## Snarplett (Apr 20, 2013)

Hello All, 

So, I was wondering about the monthly deductions in Cyprus. From what I understand, salaries over 100,000 per year are given a 50% tax break, effectively making the tax rate 12.5% on the lump salary. There's also a 6.8% social insurance deduction. What about pension/provident fund? 

I am a non EU citizen, so I'm not sure how this works. If I'm deducted per month for SI/pension, what happens when I leave the EU? Is it returned or is it lost? 

Cheers,
Snap


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## Baywatch (Mar 30, 2014)

Snarplett said:


> Hello All,
> 
> So, I was wondering about the monthly deductions in Cyprus. From what I understand, salaries over 100,000 per year are given a 50% tax break, effectively making the tax rate 12.5% on the lump salary. There's also a 6.8% social insurance deduction. What about pension/provident fund?
> 
> ...


According to our accountant, and he knows I am sure, salary over 60100 is taxed 35%, no exeption.

Social security is 6,8 % payable by the employee and 6,8% payable by the employer. This includes all social benefits, also pension.

If you leave EU you will not paid back for sure but perhaps you can claim pension. I have lived abroad for many years and I know that I can claim pension from Germany and Spain when time comes, even if it will be very tiny.

Most figures you can find here

http://www.pwc.com.cy/en/publications/assets/tax-facts-figures-2014-en.pdf


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## Snarplett (Apr 20, 2013)

Thanks Baywatch. They've told me that 50% of earnings about 100,000 Euro will not be taxed "Remuneration from any offi ce 50%
or employment exercised of the
in the Republic by an individual remuneration
who was resident outside
the Republic before the commencement
of his employment in the Republic
The exemption applies for a period of
5 years starting from the fi rst year of employment
provided that the above income of the employee
exceeds €100.000 per annum"
- http://www2.deloitte.com/content/dam/Deloitte/cy/Documents/tax/CY_TaxFacts2013_EN_Noexp.pdf

But the SI information is very helpful. It is a little disappointing that I would pay 6.8% per month to potentially never recover it fully. 

I also can't get my Goteborgs Rape in Limassol, or so I'm told.  

Cheers,
Geoff


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## Baywatch (Mar 30, 2014)

Snarplett said:


> Thanks Baywatch. They've told me that 50% of earnings about 100,000 Euro will not be taxed "Remuneration from any offi ce 50%
> or employment exercised of the
> in the Republic by an individual remuneration
> who was resident outside
> ...


If you pay a car insurance for five years and then move, without having claimed it, you will not get anything back. As I see it, this is the same thing


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## Baywatch (Mar 30, 2014)

I don't know where you get 12,5% from. If I calculate on 120000€ p.a, which is a very high salary in Cyprus, and buy your 50% off over 100000, then the tax would be ~23%


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