The President of the Republic of Cyprus has announced a further
package of measures to stimulate economic growth, reduce
unemployment and bolster the confidence of foreign investors. The
measures are intended to encourage investment by existing
businesses and will take effect immediately.
They include:
- Tax incentives geared to the recruitment of additional employees
- Full tax deduction until 2016 for capital expenditure related to innovation, research, information, communications and renewable energy
- The extension until 2016 of the increased tax deduction for capital expenditure on other assets which was introduced in May 2012 and which was originally set to expire after 2014.
The President also announced that announcements will be made
shortly regarding additional incentives relating to the
repatriation of capital for foreign investors, tax relief for
losses incurred as a result of the implementation of the Bank
Resolution Law and permanent exemptions on corporate profits from
deemed dividends that are reinvested in the business.
We will publish further details as they become available.
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