Introduction

The Republic of Cyprus has recently implemented a scheme for the promotion of Cyprus as a Mediterranean island for filming aimed to encourage international producers to choose Cyprus as their next film destination by making Cyprus a state-of-the-art production hub.

The said scheme offers outstanding tax, financial and developmental incentives in the form of tax credits, tax allowances and even cash rebates for film production.

Eligible Films

The variety of films which are eligible and compliant with the scheme is vastly inclusive and entail the following:

• Feature films / long films including those shot direct-to-video,
• Television film or television series (up to 15 episodes per annum)
• Digital / analogue animation
• Documentaries
• Transmedia and Crossmedia productions
• Reality programmes.

10 reasons to apply

Cyprus Movie Investment Scheme offers outstanding tax, financial and developmental incentives in the form of tax credits, tax allowances and even cash rebates for film production. In addition, the Cyprus Movie Investment Scheme is all more appealing if one takes into account of the numerous tax / customs advantages offered in the island. We at Ioannis Economou & Sons LLC offer you a useful synopsis of these incentives:

1. Cash Rebates of up to 35% of eligible expenditures incurred in Cyprus
2. Tax credit in the form of reduction of the applicable corporate tax of up to 50% of the taxable income in which the production is made
3. Further tax deduction of up to 20% of the eligible expenditure made in Cyprus
4. VAT return in relation to any expenditure incurred in Cyprus
5. No customs formalities and taxes for professional equipment from any other Member State of the EU
6. Company losses can be set off against income of the companies of the same group
7. 50% tax exemption on compensation exceeding €100,000 annually of individuals not domiciled in Cyprus prior to their employment
8. VAT return to all companies registered in EU Member States, Israel, Switzerland and Norway
9. 80% tax exemption on profits arising from the use or sale of intellectual property rights,
10. The transfer of any property within the framework of a reorganization is exempt of any tax and duties

Need more?

Even though the scheme has only been in effect for a short period of time, various film producers have already taken advantage of this scheme, with a notable example being the movie “Jiu Jitsu” starring Nicolas Cage with an estimated amount of 25 million Euros for production costs.

The success of the scheme should not be a surprise to anyone, since Cyprus year-round sunshine, stunning coastlines and picturesque villages make the country a great production destination.

And although the local film industry is still growing, Cyprus has a strong pool of talent and multilingual professionals with international experience. Further, English is universally spoken and helps limit barriers between international and local production crews that might present a challenge in other jurisdictions.

Our services

While the Cyprus Film Scheme is still going strong, it is understood that in its current form it will be available for a limited time only.

Our firm has a dedicated and experienced team which is ready to assist film production companies to navigate these incentives, provide advice on the best financial options available and ensure a streamline process in accordance with the wishes and needs of each specific production.