About self-employed.
All legal or natural persons working in Cyprus are required to register their business activities at the Social Insurance Service and receive the number, its abbreviation is AKA.
This applies to both employed and self-employed workers.
If you work for hire and at the same time as a freelancer (self-employed), then contributions to the social insurance fund go in these two directions.
To register self-employed you need:
- Fill out and submit the registration form to the social insurance department of your city
Registration form: http://www.mlsi.gov.cy/…/sidv2.nsf/page33_en/page33_en…
- A copy of the passport and a temporary protection card are attached to the application (take the original documents with you)
The amount of the insurance contributions depends on the field of activity and the amount of income. Each activity belongs to a certain category and has its own state-fixed income from which deductions are made.
Currently, the amount of social deduction, including GeSY, of self-employed persons is 19.6%. Payments are made every 3 months. Payment can be made at the social insurance department or through the ONLINE CONTRIBUTIONS PAYMENT SYSTEM: https://www.pay.sid.mlsi.gov.cy
See information on categories and set incomes here: http://www.mlsi.gov.cy/…/A1111EADFFE79E56C225863E003509…
You can advertise yourself without registration, but the day before you first receive money for your services, you must submit all documents to the Social Insurance Service and register as self-employed
Also, if your annual income is more than 19,500 euros (without social insurance taxes), then you pay income tax. See rates below:
19,501 – 28,000 20%
28,001 – 36,300 25%
36,301 – 60,000 30%
Over 60,000 35%
Lack of income, loss, or lack of activity does not exempt a self-employed person from paying taxes.
But you can apply for a temporary rate reduction or cancel your registration as self-employed. If your actual income is lower than the minimum amount for the relevant occupational category, then you can apply for the payment of contributions based on the actual income.
In order to terminate your activity, you need to submit an application to the social insurance department.
An example statement is here: https://www.mlsi.gov.cy/mlsi/sid/sidv2.nsf/All/C68CFCD373E12FA0C2257B170040A5A5?OpenDocument
Also note that there are many activities that require a license and/or additional documents. You can find some relevant information here: https://www.businessincyprus.gov.cy/operating-permits/
A penalty for providing services without registration of activity from 200 to 5,000 euros multiplied by the number of months of work without registration. If licensed activity is carried out without a license, fines can reach up to 20,000 euros
If you need help registering a self-employment, please contact us at WhatsApp +357 96476162
