What is GESY (National Health System)?
GESY is Cyprus's national health system. Contributions are 2.90% from employers and 2.65% from employees, collected through payroll on income up to €180,000 a year per person.
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Current Rate (Annual income cap of €180,000 per person)
Employer 2.90%, employee 2.65%, self-employed 4.00%, pensioners and other income earners 2.65%, the state 4.70%
Example
An employee earns €3,000 in a month. The employee GESY contribution is €79.50 at 2.65%, and the employer contribution is €87.00 at 2.90%.
How GESY (National Health System) works in Cyprus
GESY also applies to an individual's dividends and rents at 2.65%, within the same income cap. That matters for directors who pay themselves by dividend.
Contributions are collected through payroll together with social insurance and PAYE, and are due by the end of the month following the payroll month.
Finn includes GESY in the employer cost estimate and tracks the monthly deadline.
Related terms
Cypriot social insurance is 8.8% from the employer and 8.8% from the employee on insurable earnings, and 16.6% for the self-employed. Insurable earnings are capped at €5,742 a month in 2026.
Special Defence Contribution is a tax on certain passive income received by Cyprus tax-resident and domiciled individuals. From 1 January 2026 the rate on actual dividends is 5%, down from 17%.
Cyprus tax residents who are not domiciled in Cyprus are exempt from Special Defence Contribution on dividends and interest for 17 years of residence.
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