Paphos Life

Hi,

Looking for a bit of advice on the total cost of being a self employed tradesman in Cyprus such as National Insurance and public liability? We will be moving out next year and although financially we won't have to work I would be quite happy to do a few days a week for something to do. We are not of retirement age if that helps.

Thanks,

Allan.

You will have to go to the Social insurance office and register. its a set amount depending on your earnings ....there is a reduced rate, but you will have to fill out a form, and take some proof from your accountant...liability insurance is readily available from most insurance companies the cost would be dependant on what sort of cover you require .....Atlantic and they are very good.

WHL,

Thanks for your speedy response.

Allan.

You will need to pay into SS for 3 years before you get any health benefits and 15 years before any pension. Unfortunately Cyprus does not make it easy to be self employed. What you can charge for your labour will be significantly less than in UK and you will be in competition with every Tom, Dick and Harry working illegally, paying no tax or Social.

My advice is your financial plan should not rely on Self Employment more than as a supplementary income, at least for the first couple of years. A final bit of advice is don't let an accountant talk you into forming a company - they often do and it can be a very costly mistake.

An approximate figure for Social Insurance is somewhere between €600 and €700 per quarter. This is based on an assumption of income. If your income is below the assumption then you may apply for a reduction and this can be as low as around €300 per quarter. Unfortunately the application for a reduction can only be made once a year Feb/Mar time so for example if someone registered now, they would have to pay at the full rate until next Feb. To register you will need to demonstrate you are a going concern by providing details of any contracts you have, invoices you have produced, letterhead/business cards etc. Many people get going for the first few months before approaching Social Insurance but be aware that they will backdate any SI due to when you first started trading.

Also note that you will need to register at the same time for a tax identification number and will need to submit a tax return each year. A tax certificate will need to be provided to Social Insurance each time you apply for a reduction.

Jeanne

"You will need to pay into SS for 3 years before you get any health benefit"

This is not the case if you have been paying National Insurance in another EU country for the three years prior to moving over. This can count towards the three year requirement for a health card which you would be able to apply for as soon as you have your MEU registration document (yellow slip).

Jeanne

Happy in Cyprus wrote: ↑Mon Apr 10, 2017 1:40 am Unless things have changed recently, I would also question the 15 years before you are entitled to a Cyprus State Pension. Wife and I are in receipt of Cyprus State Pensions and qualified long before 15 years.

Unfortunately (for me) things changed with the bailout. When we arrived in 2008 we had an expectation of some pension after 3 years contributions, that was soon changed to 10 years contributions and after the bail-out increased to 15 years, with a cap on contributing after 68 years. Lloyd you were paying into the system before 2008 and get benefits based on the rules as they were then. Lucky Lloyd

Lofos-Jan wrote: ↑Mon Apr 10, 2017 1:28 am "You will need to pay into SS for 3 years before you get any health benefit"

This is not the case if you have been paying National Insurance in another EU country for the three years prior to moving over. This can count towards the three year requirement for a health card which you would be able to apply for as soon as you have your MEU registration document (yellow slip).

Jeanne

Are you 100% sure about that because I know of working UK people who have had to wait the 3 years and in one case, firstly they had health for 2 years , then after the financial bail-out had that cover removed for a year and had to re-apply, when they had completed the full 3 years. If your post is correct it is not obviously being made known. Have you got a link you could post?

Austin7 wrote: ↑Mon Apr 10, 2017 8:25 am I hate to bring the subject of Brexit into this theme but when it happens you may not be allowed to work at all!

So all the Cypriots living in UK and (for example) running restaurants wouldn't be allowed to either? I don't think so somehow.
Geoff.

geoffreys wrote: ↑Mon Apr 10, 2017 8:42 am

Austin7 wrote: ↑Mon Apr 10, 2017 8:25 am I hate to bring the subject of Brexit into this theme but when it happens you may not be allowed to work at all!

So all the Cypriots living in UK and (for example) running restaurants wouldn't be allowed to either? I don't think so somehow.
Geoff.

Geoff are you talking about the 200, 000 British people from Cypriot descendants???? because these people are as British as you and me, and will not be affected by Brexit, when talking about Cypriot nationals, currently living in the UK ...these are not many, they are made up of mainly students, attending University's... I think UK expats wanting to come here to work will be in for a shock, they will be in line at the back with EU nationals at the front of the Q

For Austin7:
The whole issue of EU Nationals in UK and UK Nationals in the EU is a major part of the Brexit negotiations.
I was NOT referring to Cypriots born in UK, just those who are living there but born in Cyprus.
If the worst comes to the worst we will all get chucked out of Cyprus and we can then watch the Cyprus economy
go right down the tubes as a result.
Will the Cyprus Govt want that?
Geoff.

Finally..... Someone has spelled it out about what may happen after Brexit to those UK citizens who are working in Cyprus rather than sitting there on their government pensions! It's a totally different ballgame of things to seriously consider.

If it goes badly, well it will be back to applying for work permits (something an employer had to do on behalf of their intended employee) being the person who was best suited and experienced for the position.

The employers I worked for from January 2009 up until leaving at the end of March 2016 only ever got a work permit for 1 person - an American IT wizz as our new Manager. If you weren't entitled to work without a permit you didn't even get an interview....

I was initially employed in a Customer Support role based on previous experience with another online gaming company.

Something to seriously think about over the next 2 years if you are below UK pension age.

Austin7 wrote: ↑Mon Apr 10, 2017 10:36 am

geoffreys wrote: ↑Mon Apr 10, 2017 10:09 am For Austin7:
The whole issue of EU Nationals in UK and UK Nationals in the EU is a major part of the Brexit negotiations.
I was NOT referring to Cypriots born in UK, just those who are living there but born in Cyprus.
If the worst comes to the worst we will all get chucked out of Cyprus and we can then watch the Cyprus economy
go right down the tubes as a result.
Will the Cyprus Govt want that?
Geoff.

I didn't mention Cypriots at all! Don't know how long you have lived in Cyprus but prior to Cyprus joining the EU it was a totally different situation regarding foreigners (like Iike us Brits & others) not generally being allowed to work in Cyprus. All I am saying is that the situation may well revert to what it was regarding 'work'. Nothing to do with all Brits getting kicked out of Cyprus. Calm down dear, calm down!

I mentioned Cypriots specifically simply because we are in Cyprus. I could have said ANY EU Nationals.
I agree that working and residing not necessarily the same thing, the future of either post Brexit is not clear.
However I have faith in human nature, neither the Cyprus Govt or the EU Commission will want to cut off their nose to spite their face.
I have no worries about our future here, or health care here, or increases in UK State Pension paid to us here.
IMO nothing will change.
OK, those Brits wishing to work might have to apply for work permits - so what, is that a problem?
Geoff.

Yes Geoffrey, applying for work permits can be a problem depending upon the rules.... If the employer has to make the application (in Cyprus) the chances are the employer will not do it.

Jobs are supposed to be allocated first of all to those who are eligible to work without a permit (i.e. EU Nationals). Anyone else goes to the back of the queue unless they are the only applicant who meets the criteria for the job in terms of qualifications and experience.

Likewise if the person has to make their own application they will be at the back again if their trade or skill is very popular and not necessarily a needy one in their country of chosen residency.

Jamboal

Change your name to Tom, Dick or Harry!

Good luck in Cyprus.

Alan

WHL wrote: ↑Mon Apr 10, 2017 11:49 am Just look at the problems faced by non EU people, trying to work here at present....that will be the same for expats when the UK leaves the club...it will not be as easy as Geoff,s so what attitude.,

I never said it would be easy, I just said so what if it is as difficult as you imply.
I hope the UK will make it difficult for overseas workers to come in and work, a points system is needed, a guaranteed job, health care paid for by the prospective employer, and no local (UK national) available to do the job. Also no benefits paid for 5+ years!!!
If other countries apply similar criteria to UK Nationals wanting to work in those countries, then fine with me, as we would see
a level playing field everywhere.
In the real world things are rarely easy!
Geoff.

Going back to the original question re costs for Self-Employed.....

Things may have changed since my husband was registered and the experience of some of our friends but as mentioned earlier in the thread, the portion to be paid was dependent upon the amount of earnings.

However, the actual earnings were what the Cyprus government deemed to be in accordance with your trade or business.

Neither my husband or our friends had a trade which was listed in the Employment Office gazetteer or trade book....

My husband was paying far too much as he only did 2 or 3 days work a week of around 5 hours a day. Part-time work wasn't even recognised because the SI deductions were based on a full time salary for the job.

Hopefully, things may nowadays be geared to the actual amount earned rather than what the Employment Office believe you can earn. If not, be forewarned.... it can be a bit of a farce.

My husband asked for his contributions to be reduced which they did but it was still too high. So, he appealed - and they were eventually reduced again.

You can get reduced rates, by filling a form, and getting proof of earnings from your accountant, the lowest fees are approx 300/350 a quarter.