Private Pension Plans
Ιδιωτικά Συνταξιοδοτικά Σχέδια
Coverage
Voluntary insurance
- Persons can voluntarily participate in private pension plans (usually offered by banks and/or insurance companies).
Financing
General finances
- Fully funded personal pension plans based on contribution payments and capital revenues.
Contribution rates
- Persons provide contributions themselves and decide on the amount of contribution payments and the length of the contribution period individually.
State support & incentivising strategies
- Contributions to pension plans which are certified by the Tax Commissioner are tax-deductible.
Administration
- Pension plan providers (banks, insurance companies, or investment funds) manage pension funds and pay benefits directly to the entitled person.
Qualifying Conditions
- Qualifying conditions depend on the specifics of the pension plan.
Benefits
Pension payments
- Depend on the terms of pension payment (lump sum payment, fixed-term or lifelong pension) and the general terms of the pension plan.
Taxation and social security contributions
- Βenefits may be subject to taxation, in accordance with the Income Tax Law (Law 118(I)/2002) in the event that total pension amount exceeds EUR 19,500.
- Contributions to public health insurance are mandatory (2.65% of pension benefit for the Cypriot General Health System).
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Voluntary insurance
- Persons can voluntarily participate in private pension plans (usually offered by banks and/or insurance companies).
General finances
- Fully funded personal pension plans based on contribution payments and capital revenues.
Contribution rates
- Persons provide contributions themselves and decide on the amount of contribution payments and the length of the contribution period individually.
State support & incentivising strategies
- Contributions to pension plans which are certified by the Tax Commissioner are tax-deductible.
- Pension plan providers (banks, insurance companies, or investment funds) manage pension funds and pay benefits directly to the entitled person.
- Qualifying conditions depend on the specifics of the pension plan.
Pension payments
- Depend on the terms of pension payment (lump sum payment, fixed-term or lifelong pension) and the general terms of the pension plan.
Taxation and social security contributions
- Βenefits may be subject to taxation, in accordance with the Income Tax Law (Law 118(I)/2002) in the event that total pension amount exceeds EUR 19,500.
- Contributions to public health insurance are mandatory (2.65% of pension benefit for the Cypriot General Health System).
Legal Basis: Insurance and Reinsurance Services and Other Related Issues Law of 2016 (Law 38(I) 2016) (Ο περί Ασφαλιστικών και Αντασφαλιστικών Εργασιών και Άλλων Συναφών Θεμάτων Νόμος του 2016 (Ν. 38(I)/2016)).