Our offices remain open with operations being partially set-up remotely as well. There will be no interruption to business and/or communication whatsoever. Business continuity plans have now been fully implemented.
The tax incentives for investing in innovative businesses in Cyprus, which have been in effect since January 2017, expire on 30th June 2021.
It is being reminded that the aim for these incentives is to boost entrepreneurship and innovation as well as the Cyprus business ecosystem. These incentives are in line with EU rules on State Aid.
The said tax incentives are given to eligible individuals who invest (by making a ‘risk finance investment’) in qualifying innovative small and medium sized enterprises (SMEs), either direct or through an investment fund or through an alternative trading platform. There are at least 39 companies that have been approved as qualifying enterprises within the existing incentive framework.
An eligible individual is a physical person who is independent from the enterprise (i.e. not being an existing shareholder of the enterprise, unless he/she was one of the founders upon its establishment).
A risk finance investment is equity and quasi-equity investments, loans including leases, guarantees or a mix thereof; including follow-on investments.
The related tax incentive, that investors can benefit from, is that they may deduct the cost of the investment from their own taxable income, subject to the following limitations:
For more information or assistance you may contact us at [email protected]