Cyprus has become a rising star for filmmakers worldwide, offering exceptional cost savings and streamlined processes through its updated Cyprus Film Scheme. With a focus on feature films, TV series, and commercials, this scheme provides generous financial incentives that rival the best in Europe. Here’s what producers need to know about the scheme’s benefits, requirements, and approval process.

Total Reduction Benefits

The Cyprus Film Scheme offers a combination of cash rebates, tax credits, and tax deductions designed to lower production costs significantly:

  • Cash Rebate: Up to 45% of Eligible Expenditure Below the Line and 25% Above the Line, with an annual cap of €25 million. Rebates are paid within 90 days after approval of final reports.
  • Tax Credit: Producers can receive between 25% and 35% of Eligible Expenditure, capped at 50% of taxable income for the year. Unused credits can be carried forward for up to five years.
  • Tax Deduction for Investments: Infrastructure and equipment investments are deductible from taxable income, with benefits of 20% for small enterprises and 10% for medium enterprises.

Above and Below the Line Eligible Expenditures

Understanding what qualifies for rebates and credits is crucial for planning your production:

  • Above the Line: Includes costs for the producer, director, scriptwriters (if the script is written in Cyprus), casting directors, and up to three leading roles. Capped at 30% of total eligible expenditure in Cyprus.
  • Below the Line: Covers all other production costs, including crew salaries, accommodation, transportation, props, set design, and post-production services conducted in Cyprus.

Requirements for Approval

To take advantage of the Cyprus Film Scheme, producers must meet these criteria:

  1. Applicant Eligibility:
    • Registered as a legal entity in Cyprus or another EU country with local operations.
    • Proven experience with at least two productions in the last seven years.
    • Open a dedicated Cypriot bank account for production-related transactions.
  2. Minimum Spend in Cyprus:
    • €200,000 for feature films.
    • €80,000 for other audiovisual productions.
  3. Cultural Test:
    • Productions must promote Cypriot, European, or world culture.
    • Assessment is based on content, creative contribution, and use of local cultural infrastructure.
  4. Proof of Funds:
    • Evidence of funding covering at least 50% of the production’s budget.

The Approval Process

Cyprus offers a producer-friendly, streamlined approval process:

1. Pre-Approval

  • Submit an online application via the Cyprus Film Commission’s website, including production plans, budget breakdowns, and proof of funding.
  • The Commission reviews the application and issues a Temporary Approval Certificate within 60 days.
  • Filming must commence within 24 weeks of receiving the certificate.

2. Final Approval

  • Submit audited reports and supporting documents upon completing the production.
  • The Commission assesses the claim and makes a final recommendation to the Competent Authority.
  • Cash rebates are disbursed within 90 days of final approval.

3. Ongoing Compliance

  • Productions must employ local talent:
    • 4 below the line, 2 above the line, and 1 in the production team must be Cypriot or EU residents.
  • Maintain all documents and records for at least 10 years.

Why Choose Cyprus?

The Cyprus Film Scheme’s combination of generous incentives, streamlined processes, and skilled local talent makes it one of the most attractive options for international productions. Whether you’re producing a feature film, TV series, or commercial, Cyprus offers high-quality, cost-effective solutions that help maximize your budget.

For more information on how to take advantage of these incentives, visit the Cyprus Film Commission’s official website.