Date added: : 30.01.2020

The Republic of Cyprus extends the special tax regime for investors. This was announced in a press release issued by the Ministry of Finance on January 23. Private investors can take advantage of this opportunity, investing in the development of innovative companies, as well as startups registered in Cyprus.

The country's authorities extend the benefits for 18 months. The essence of the special tax regime lies in the possibility of obtaining a deduction from taxable income. Investors who invested their money in Cyprus startups can return up to 50% of taxes. The Republic has set a maximum limit on the deduction amount - not more than 150 thousand euros per year.

If the investor claims a deduction in excess of the established limits, the amounts can be transferred to the following tax periods, but not more than 5 years. Investments can be made either directly or through an investment fund. You can apply for a tax deduction if the company in which the investments were made operates in Cyprus, belongs to the SMEs category, and over the past 3 years, has spent 10% or more of the funds raised for research and development.

Law&Trust offers services for private investors who wish to invest in startups in Cyprus. Our staff will tell you more about the conditions for obtaining a tax deduction and help you make an investment.