Cyprus: The All-in-One Film Destination
Choosing Cyprus as the next Film destination offers an array of opportunities and a comprehensive package of benefits:
- The Cyprus Filming Scheme: grants and tax incentives in the form of cash rebates, tax credit, tax deduction for investments in infrastructure and equipment, as well as return of VAT on expenditure.
- Island Characteristics: a strategically located island with centuries of history, art and culture coupled with a unique combination of mountain and sea sceneries, having excellent connectivity within and outside the country, a pleasant Mediterranean climate, modern infrastructure and advanced telecommunications, in addition to direct access to local talent.
- Business Incentives: offered to businesses wishing to relocate or establish their headquarters in Cyprus.
- Tax Benefits & Incentives: offered to corporates and individuals.
- Intellectual Property (IP) Incentives: including the sought-after IP Tax Box Regime.
The Cyprus Filming Scheme
The Cyprus Filming Scheme forms part of the Government’s efforts to promote the film industry and the Republic of Cyprus as a filming destination.
This Filming Scheme revolves around a dynamic set of development, financial and tax incentives backed by an annual budget of €25 million until 31 December 2023.
The Grants & Tax Incentives of the Cyprus Filming Scheme
The grant and tax incentive opportunities of the Cyprus Filming Scheme may be divided into four main categories:
- Cash Rebates of up to 40% of eligible expenditure incurred in Cyprus.
- Tax Credit of up to 50% against the applicant’s taxable income for the tax year within which the production is made.
- Tax Deduction for qualifying investments in cinematographic infrastructure and technological equipment to small and medium-sized enterprises (SME) subject to tax liability in Cyprus of up to 20% and 10% respectively.
- VAT Refund on qualifying production expenditures.
The Qualifying Production Categories of the Cyprus Filming Scheme
Qualifying production categories include:
- Cinematograph films: long firms; and
- Television films (drama), Television series or mini-series: TV films, series, and mini-series, digital and analogue animation, creative documentaries, and reality programmes that promote Cyprus and the Cypriot culture.
The Filming Scheme excludes the following from the list of qualifying production categories:
- any public or special performance organised for filming or other purpose;
- any sporting event;
- TV game shows other than reality programmes;
- current affairs programmes or talk shows;
- educational programmes presenting or explaining hobbies, projects, and so forth; and
- review, magazine- or life-style programmes.
The Services Portfolio of ServPRO – What we can do for you
ServPRO is a well-established team of accountants, auditors, advocates and consultants in Cyprus. Our areas of expertise are Accounting & Finance, Advisory & Consulting, Audit & Assurance, Corporate & Legal, Economic Substance and Taxation.
Our team has a stellar track record in delivering practical solutions to corporate and individual clients with a spherical, solution-driven and detail-oriented approach, while demonstrating an aptitude of professionalism, integrity and commercial acumen.
Contact us today to talk more about the Cyprus Film Scheme and the application process.
For more information on this topic contact us by telephone (+35722021100) or email ([email protected]).