Accounting for doctors & medical practices in Cyprus
Most Cyprus doctors begin as sole traders and reach a point where a limited company becomes worth modelling. The structure decision drives everything that follows. As a self-employed practitioner your profit is taxed under the personal income tax bands, where the first €22,000 is tax-free, and you also pay Social Insurance at 16.6% and the General Healthcare System (GHS) levy at 4% on your insurable income. A company instead pays a flat 15% corporate tax, with profits extracted as salary or dividends and planned around your circumstances. Either way you must manage provisional tax instalments to avoid the 10% surcharge, keep proper records, and claim every allowable expense, from medical equipment and indemnity insurance to professional subscriptions and use of premises. Doctors below €120,000 of annual turnover are exempt from preparing audited accounts but still file a return. For consultants relocating to Cyprus, non-dom status and the first-employment exemption can transform the take-home position. We model the options, run the compliance and let you stay focused on patients.
What we take off your plate
Self-employed vs limited company
Below a certain profit level sole-trader simplicity wins; above it the 15% corporate rate plus dividend planning often pulls ahead. We model both against your actual income and growth plans so the structure decision is evidence-based, not guesswork.
Provisional tax & the 10% surcharge
Cyprus requires a provisional tax estimate paid in two instalments during the year. If your declared estimate falls short of 75% of the final liability, a 10% surcharge applies to the underpayment. We estimate carefully and revise mid-year so you avoid it.
Social Insurance & GHS
A self-employed doctor pays Social Insurance at 16.6% on a notional occupational income set for the profession, plus GHS at 4%. These sit on top of income tax and are easy to under-budget for. If you employ nurses or admin staff, full payroll obligations apply too.
Allowable expenses & record-keeping
Indemnity and malpractice insurance, equipment and its capital allowances, continuing professional development, professional body fees and a share of premises and motor costs are all deductible when properly documented. Weak records mean lost deductions and audit exposure.
VAT on medical services
Healthcare provided by registered medical professionals is generally VAT-exempt, but cosmetic, wellness, medico-legal reports and certain non-therapeutic services can be taxable at 19%. Mixed practices must track which income is exempt and which counts toward the €15,600 threshold.
Relocating consultants & non-dom
A doctor moving to Cyprus and becoming tax resident is typically non-domiciled, so dividends and interest escape the Special Defence Contribution. Qualifying first employment in Cyprus can also unlock a 50% income exemption for high earners. The set-up must be done correctly from day one.
The services that fit
Tax Compliance
Corporate and personal income tax returns, provisional tax and SDC — prepared accurately and filed on time.
Learn moreAccounting & Bookkeeping
Accurate, ICPAC-aligned bookkeeping and management accounts that keep your Cyprus company compliant and decision-ready.
Learn moreTax for Individuals & Non-Dom
Personal tax returns, relocation, tax-residency and the non-dom regime — for expats, investors and professionals.
Learn moreFrequently asked questions
It depends on profit level and goals. Self-employment is simpler and taxed under the personal bands, with the first €22,000 tax-free. A company gives a flat 15% corporate rate plus dividend planning and liability protection, which usually wins at higher profits. We model both on your real numbers before you decide.
Social Insurance at 16.6% on a notional occupational income fixed for the profession, plus the GHS levy at 4% on insurable income. Both are separate from, and on top of, income tax, so they should be budgeted for alongside your provisional tax instalments.
If your annual turnover is below €120,000 you are exempt from preparing audited financial statements, though you must still keep proper books and file an income tax return. Above that threshold, or if you operate through a company, the audit or ISRE 2400 review rules apply.
Healthcare services supplied by registered medical practitioners are generally exempt from VAT. However, cosmetic procedures, wellness treatments, medico-legal reports and similar non-therapeutic services can be standard-rated at 19%, so a mixed practice must separate exempt from taxable income.
You estimate your taxable income for the year and pay it in two instalments, by 31 July and 31 December. If the estimate is less than 75% of the final liability, a 10% surcharge is added to the shortfall, so a realistic estimate, revised if income changes, is important.
Yes. A doctor who becomes Cyprus tax resident is normally non-domiciled, meaning 0% Special Defence Contribution on dividends and interest. Qualifying first employment in Cyprus above the income limit may also give a 50% exemption on employment income for a set number of years.
Wholly and exclusively incurred practice costs: malpractice and indemnity insurance, medical equipment with capital allowances, CPD and conferences, professional registration fees, staff costs, consumables and an appropriate share of premises and vehicle expenses. Good documentation is the difference between claiming and losing them.
Useful tools & guides
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