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Cyprus government has introduced a package of tax incentives to international film producers in order to consider our country for film-making.

Forms of Audiovisual Films compliant with the Scheme:

• Feature Films - Long Films
• Television film 
• Television series or mini-series
• Digital or Analogue Animation
• Creative documentary
• Transmedia and Crossmedia productions
• Reality programmes which directly or indirectly promote Cyprus and its culture

The following are not eligible under the Scheme:

• Any public or special performance(s) staged for filming or otherwise.
• Any sporting event
• Television game shows other than reality programmes
• Current affairs or talk shows
• Educational programmes for tasks, hobbies or projects
• Review, magazine-style, or lifestyle programmes

Summary of incentives

1. Cash rebate
   • Cash rebate of up to 35% of eligible expenditure made in Cyprus.
   • For each production, the maximum that may be granted could not exceed €650.000 and the annual available sum shall not exceed €1.500.000.
   • The sum shall be payable upon completion of filming and once an audit of expenditure claimed performed and a Final Approval Certificate issued.
   • Companies facing financial difficulties are excluded from the Scheme.
     
     
2. Tax credit
   • Maximum aid of 35% of the eligible expenditure made in Cyprus.
   • Sum of tax credit against the taxable income that not exceeds 50%.
   • The tax credit, to the extent that it is not granted due to the above percentage restriction, shall be carried forward and be given within the next 5 years, subject to the above percentage restriction.
   • The Tax credit is not transferable to a third person. 
     
     
3. Tax allowance – Investment in Cultural Infrastructure and Equipment
   • For small enterprises a maximum aid of 20% of eligible expenditure and 10% for middle-sized enterprises.
   • The investment, where it relates to equipment, shall remain in Cyprus for a period of at least 5 years.
   • Specific conditions must meet in order to qualify the investment as Eligible Infrastructure and Equipment Expenditure.
     
     
4. VAT Refund
   • VAT return in relation to any eligible expenditure, in the same way as every natural or legal person of a Member State of the EU has.
   • VAT refund arises within 6 months from the last deadline on submitting the VAT declaration of the period that the expense occurred or from the date the application for VAT return is filled.

The online platform “Film in Cyprus” (film.investcyprus.org.cy) was created for the promotion of the Scheme, through which those interested can get information and submit an application to participate.

We are at your disposal for any further information or clarification you need.