NEW INCENTIVES FOR FILM PRODUCTION IN CYPRUS

A new commission has been established, comprising of delegates from Invest Cyprus, The Ministry of Finance, Ministry of Education and Culture and the Cyprus Tourism Organization. This so-called Cyprus Film Commission examines proposals by producers for aid based on the economic and cultural benefits for the Republic of Cyprus.

Several incentives have been introduced, encouraging international producers to choose Cyprus as their next film destination. Production companies choosing to film on the island will have the following choice of incentives:

  • A cash rebate of up to 35%, on completion of the film, of eligible expenditures incurred in Cyprus. The amount will depend on the score of the production at the cultural test and an audit report will need to be submitted; or
  • A tax credit (reduction of the corporate tax liability of the company responsible for the implementation of a production). The amount will again depend on the score of the production at the cultural test and an audit report will need to be submitted. It should be noted that the sum of the tax credit against the taxable income shall not exceed 50% of the applicant’s taxable income for the tax year of the production. In the event that the tax credit is not granted, due to excess of the aforementioned 50%, the credit shall be carried forward and be given within the next 5 years (this is again subject to the indicated percentage restriction).

Moreover, applicants can, pending parliamentary approval, also benefit from tax discounts on investments made on equipment and infrastructure and VAT returns on expenditure in scope.

In order to be eligible for any of the incentives the production must qualify. Among such qualifying productions are:

  • feature films (including animation);
  • television series or mini-series;
  • documentaries for theatrical or television release;
  • animation (digital or analogue);
  • television research programs and natural history.

Invest Cyprus has drafted a detailed brochure informing interested parties on this scheme and has established a website providing information


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