articles | 11 January 2022 | ServPRO

Cyprus The All-in-One Film Destination

Choosing Cyprus as the next filming 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 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 Incentivesof 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

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. 

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