Cyprus Film Scheme (Olivewood Production Projects)
Cyprus & the Film Scheme
Cyprus has introduced a financial incentive scheme for audiovisual works dedicated to international producers and film studios that meet the criteria of Small and Medium Enterprises. The aim of the scheme is to promote Cyprus to investors as a film location on an international level, under the Incentive Plan “Olivewood”.
The island of Cyprus is an EU member state, located northeast of the Mediterranean Sea and is one of the region’s leading business centres while it enjoys the advantages of tourism, consultancy, shipping, banking, and insurance markets. The official languages of the island are Greek and English.
Cyprus is the sunniest island in Europe with over 300 days of sun and is endowed with golden sand beaches with crystal-clear waters and pine-scented forests. The proximity between the beaches, forests, mountains and picturesque villages is very small, thus, having them under a consistently sunny climate is ideal for film productions. In other words, Cyprus is itself a “natural studio”.
Why choose the island of Cyprus for your next film production?
Over 300+ days of sun
Golden sand beaches with crystal-clear waters
Pine scented forests
Picturesque villages
Short distance proximity between film locations
English is widely spoken around the island
Medieval culture and deserted sceneries
Short distance from neighbouring countries
Large variety of filming locations with captivating sceneries
The Incentives
Cash Rebate
Cash Rebate
Rebate of up to 40% of the eligible expenditures below the line and 25% of the eligible expenditures above the line incurred in Cyprus will be granted. The Rebate percentage will depend on the score of the production on the cultural test.
The rebate will be given once filming is completed, on receipt of the audit report and its review by the committee
Tax Credit
Tax Credit
As an alternative to cash rebates, tax credit, offers a reduction of the corporate tax liability of the company responsible for the implementation of production, with the same criteria that apply for cash rebates.
The maximum aid shall represent 40% of the eligible expenditures below the line and 25% of the eligible expenditures above the line made in Cyprus
Tax discount for investment in infrastructure and equipment
Tax discount for investment in infrastructure and equipment
Any small and medium-sized enterprise subject to a tax liability in Cyprus investing in cinematographic infrastructure and technological equipment will be entitled to deduct the amount of its investment from its taxable income.
The aid may not exceed 20% of the qualifying production expenditures in the case of small enterprises and 10% of the qualifying production expenditures in the case of medium-sized enterprises.
Investment in the case of equipment should remain in the territory of Cyprus for a period of at least 5 years.
VAT refund on qualifying production expenditures
VAT refund on qualifying production expenditures
For qualifying production expenditures incurred in Cyprus by natural or legal persons from third countries and which are related to the implementation of productions, the company is entitled to a refund of VAT.
Value Added Tax rates in the Republic of Cyprus are 19%, 9% and 5% on all products and services provided in the Republic of Cyprus and 19% and 5%, on all taxable imports.
VAT returns arise within 6 months with respect to the legal person who carries out the foreign filming in Cyprus from the end of the last deadline for submitting the VAT declaration for the specific VAT period during which the expense occurred or from the date on which the application for VAT return is filed.
What we do and why you should choose our services
Our Firm is among the very few on the island which has the necessary skill and knowledge in order to provide tailored fit solutions and open architecture services in the entertainment industry.
Our Firm, through our dedicated team of professionally qualified experts, will be thrilled to provide diligent and proactive services to the Cyprus Film Scheme applicant.
Our services will cover the pre-production and post-production stages of the project and include:
