Cyprus Film Scheme

The Council of Ministers of the Republic of Cyprus approved the Cyprus Film Scheme on 27 September 2017 (decision no. 1433/2017) with a view to put Cyprus on the map of filming destinations. Described by some as “a natural film studio”, Cyprus offers a number of incentives targeting the international filming industry.

 

Assessment Committee

The responsibility for the assessment and approval of applications made under the Cyprus Film Scheme lies with the Assessment Committee for the Cyprus Film Scheme. The Assessment Committee also makes a recommendation to the competent authority (i.e. the Ministry of Finance) on the aid that the applicant should receive.

 

Online Platform

Cyprus has launched an online platform/website providing various information about the Cyprus Film Scheme and Cyprus in general.

 

Benefits

The Cyprus Film Scheme provides a selection of incentives for film production companies by offering to the filming industry the opportunity to shoot their films in an idyllic location and stunning landscapes:

  • Cash rebate

Applicants may receive a rebate of up to 35% on eligible expenditures incurred in Cyprus payable on completion of the filming.

  • Tax Credit

Instead of the cash rebate, the applicant may choose to benefit from a tax credit of up to 35%. The tax credit shall not exceed the amount of 50% of the company’s taxable income.

  • Tax Discount for investment in infrastructure

The tax discount is available for small and medium-sized enterprises which invest in filming infrastructure and equipment. The aid is capped at 20% on eligible expenditure in the case of small enterprises and 10% in the case of medium-sized enterprises.

  • VAT return on qualifying production expenditures for third countries

VAT return for qualifying expenditure incurred in Cyprus by natural or legal persons from third countries which are related to the implementation of productions.

 

Qualifying Film Categories

  • a film, including documentaries and animation, of a duration not less than 60 minutes – except that in the case of a large format (ΙΜΑΧ) film where the duration may be less than 60 minutes
  • one episode of a television drama programme, including animation
  • one episode of television or cinema documentary programme, including factual programmes of natural history.
  • a series of television programmes (with respect to television or mini-series, the number of episodes shall not exceed 15 episodes per year or six hundred (600) minutes per year
  • reality programmes which present culture and promote the Republic of Cyprus abroad
  • other audiovisual projects as developed and approved by the Assessment Committee

 

Eligible Expenditure

Eligible expenditure under the Cyprus Film Scheme include, amongst others, the following:

  • Wages for cast, extras and crew
  • Accommodation in the Republic of Cyprus
  • Per diems of staff
  • Audio equipment rental
  • Transport and vehicle rental services
  • Diving services
  • Laundry and cleaning services
  • Pyrotechnic services
  • Rental of helicopters and airplanes
  • Rental of marine vehicles
  • Licenses for use of locations and archaeological monuments

 

Why Cyprus?

Cyprus offers unique sceneries with only a short drive separating the blues of the sea, the steep mountains and picturesque villages spread throughout the island. Cyprus also provides an ideal location for uninterrupted filming as it offers more than 300 sunny days per year.

Last but not least, its location between Europe, Asia and Africa can be exploited by film producers seeking to shoot their films in various locations, countries and continents.

 

How can we help

Here in CX Financia we can guide you through the Cyprus Film Scheme application process and provide advice on structuring your film production enterprise in Cyprus.

Our services include, amongst others:

  • Liaising with the competent authority during the application and assessment process
  • Monitoring the status of the application and follow up, including personal meetings were deemed necessary
  • Identifying the documents and information required by the competent authority for the application
  • Incorporating a Cyprus company (or structuring a group of companies) for the purposes of carrying out and managing the production of the film
  • Administrative services and tax services in relation to the Cyprus corporate entity
  • Bookkeeping and accounting services
  • Advising on financing options
  • Assist with bank accounts opening at local banks

Get in touch with us to schedule a free meeting with our team of experts

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