Investment on Pitsas Insurance

Provident Funds in Cyprus in 2025. A complete guide.

Tue, 19 Dec 2023 00:00:00 +0000

What is a provident fund in Cyprus?

A provident fund is essentially a private group pension plan that some employers provide for their employees in Cyprus.

Provident fund members invest monthly a fixed percentage of their salary into a common investment pool for their retirement in much the same way as they would with social insurances.

The ageing population and the Cypriot economy’s slow development rates for over a decade have put the social security system into a challenging situation.

Social insurance in Cyprus in 2025. A complete guide.

Fri, 14 Jul 2023 00:00:00 +0000

Social insurance Cyprus

In this guide we will cover everything that businessmen, self-employed people and employees must know about the social insurance system of Cyprus.

We will cover the types of contributions, how social insurances affect income tax, and details about the system in general.

Specifically, we will cover the following topics:

Table of contents

Social insurance contributions Cyprus
Gesy contributions 2024
Cyprus self employed social insurance
Social insurance number Cyprus
How do social insurances affect your income tax?
How can I reduce my social insurance contributions?
Cyprus social insurance calculator
Social insurance Cyprus working hours
Social insurance Cyprus offices in all cities
Cyprus social insurance law
Cyprus social insurance penalties
Social insurance payment in Cyprus
Social insurance fund Cyprus

Social insurance contributions Cyprus

The table below shows the percentile of social insurance contributions in Cyprus.

Saving Funds in Cyprus

Mon, 08 Aug 2022 00:00:00 +0000

1.The Categories of the Funds

Savings funds in Cyprus can be classifed into three categories according to the level of risk they entail:

Conservative – Low-risk funds
Moderate – Medium-risk funds
Aggressive – High-risk funds

1.1. Low-Risk Funds

Low-Risk Funds are the most popular option in Cyprus, since they mostly invest on saving or investment products that carry low investment risk, such as cash funds, certificates of deposits, government bonds of western economies (>AA+) and corporate bonds from big companies (blue chips).

Saving Insurance – Private Pension – Tax Exemptions in Cyprus

Mon, 08 Aug 2022 00:00:00 +0000

1. Introduction

Savings insurance and private pensions are the only non-government saving plans accepted by the Cyprus tax authorities as being valid tax exemptions.

All owners of companies that are tax residents of Cyprus, as well as highly paid employees registered in the Cyprus Social Insurance system, can benefit from the exemptions.

Apart from offering significant tax deductions, a private pension can ensure a lower risk and a higher net return compared to certificates of deposits.

Tax Calculator for Natural Persons in Cyprus

Mon, 08 Aug 2022 00:00:00 +0000

A tax calculator is based on the following principles:

● The sum of tax reductions (namely, social insurances, savings insurance premiums, GHS – GESY contributions etc.) should not surpass 20% of income.

● In the case of natural persons, savings insurance should come with an obligatory life insurance. As an approximation, the insured capital should be at least 13 times the insurance premium (e.g. if the premium is 10,000, the insured capital should be at least 130,000 euro).

Tax on interest income in Cyprus in 2025. Special Contribution for Defence

Mon, 08 Aug 2022 00:00:00 +0000

Bank deposits’ interest in Cyprus is subject to a 30% yield tax called special contribution for defence.

The yield of bank deposits is either negative or very close to zero due to the expansionary monetary policy of the European Central Bank (ECB).

Inflation skyrocketing in 2022 will force the ECB to raise the basic interest rate to over 1%, but this is not expected to also significantly increase the savings interest rates of bank notes.

Terms and Conditions of Savings Insurance – Private Pensions in Cyprus

Mon, 08 Aug 2022 00:00:00 +0000

The main terms and conditions of savings insurance plans are mentioned below in brief.

1.The minimum insurance premium is 35 euro on a monthly basis and the minimum insured capital is €1,000.

2.In case the company is insured, the contract has €1,000 as the minimum insured capital amount.

3.Savings insurance can be paid annually (via bank transfer) or on a monthly basis using direct debit.

4.The maximum age acceptable for signing a contract is 70.

The benefits and risks of savings insurance in Cyprus

Mon, 08 Aug 2022 00:00:00 +0000

1. The benefits

1.1. Reduced risk – Risk diversification

Savings Insurance manages a particularly successful risk diversification, such that no independent investor could accomplish alone.

Savings insurance funds place investors’ assets in multiple certificate of deposits in triple A banks institutions in the USA, Germany, UK and Switzerland.

Funds of a clear investment nature invest investor’s money on bonds and stocks from different industries and countries.

This practically means that the safety of the contracting party’s savings does not depend on the credit rating of any individual organisation, industry, or country.

What is Investment Life Insurance?

Tue, 21 Dec 2021 00:00:00 +0000

Investment insurance is life insurance with an excellent opportunity to manage your savings by investing yourself. By choosing this life insurance, you take care of your loved ones and save for the future, making investments when the investment risk falls on you.

Pitsas Insurances

Cyprus, Limassol

Investment life insurance programs in Cyprus

Mon, 20 Dec 2021 00:00:00 +0000

Since 2014, Pitsas Insurance has been preparing analytical reviews that present the main life insurance products in Cyprus in comparison with the corresponding programs taking place in foreign countries.

This article is available in Greek and Russian.

Pitsas Insurances

Cyprus, Limassol

Cyprus Pension Programs. Expected changes in the legislation

Sun, 05 Sep 2021 00:00:00 +0000

Cyprus pension programs

Youth and health are not eternal. Each of us must do everything possible to secure a decent future for himself and his loved ones.

Nevertheless, the financial stability and well-being that should accompany you after retirement cannot be achieved overnight.

Existing government pension programs, as good as they are, cannot provide their beneficiaries with pensions that will allow them to live according to their real needs. In particular, according to Eurostat, Cyprus have one of the lowest pension levels in Europe.

Investment Insurance (FAQ)

Thu, 01 Jun 2017 00:00:00 +0000

What is investment insurance?

Investment insurance policies are two-for-one investment plans. Under an investment insurance plan, when you pay your premium, a part of it gets invested after a specific timeframe.

As the value of your premium increases, your investment also increases.

Investment insurance provides financial security and economic growth opportunities for the insured. It comprises two main parts: the insurance plan and investment.

Specifically, investment insurance is categorised within a broad category of unit-linked funds like savings insurances (e.g. saving and investment units).