Our client is self-employed in Greece offering services to his clients in Greece. At the same time, he is an employee in Cyprus, working part-time for a Cyprus company. Under the current European legislation (Regulations (EC) No 883/2004 and 987/2009), when a European citizen works in more than one Member States, this person needs to be subjected to social security contributions in only one Member State. Which Member State should be charging for social security contributions is outlined in the applicable laws.
In our case, our client is subject to the Cyprus legislation with regards to social security contributions based on his specific arrangements, being an employee in Cyprus and self-employed in Greece. This is based on:
Regulations (EC) No 883/2004 – Article 13 Pursuit of activities in two or more Member States
[..] 3. A person who normally pursues an activity as an employed person and an activity as a self-employed person in different Member States shall be subject to the legislation of the Member State in which he pursues an activity as an employed person [..].
The above is not the only condition one needs to meet. There might be applicable time and/or income minimums that need to be met, depending on their specific situation.
The process the client followed, upon commencement of his employment in Cyprus, is as below:
From the moment of the completion of the above process, the client’s total income, in Greece and Cyprus, is subject to the Cyprus law with regards to the Social Security contributions. With regards to the income tax, it is worth noting here that the client remains tax resident in Greece where he declares his worldwide income as required. However, given his employment in Cyprus, he also must file annual tax returns in Cyprus, declaring his earnings in Cyprus and paying any resulting income tax in Cyprus.Back to Articles Back to Citius Trust Limited
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