On 15 October 2021, the Cyprus Ministry of Finance has presented the strategy for attracting companies for activating and expanding their activities in Cyprus.
The strategy includes following tax incentives:
- Extension of tax exemption for investment in innovative companies by extending the tax exemption to 50%. The exemption was previously in force until June 2021 and limited to natural persons.
- Increased tax deduction (compared to the actual one) for R&D expenses by 20%. Eligible research and development expenses will be deducted from taxable income equal to 120% of the actual.
The Plan enters into force on 1 January 2022.
