Cyprus extends incentive for Investment in Innovative and Start-up Companies
In Blog Cyprus
The Cyprus Ministry of Finance announced, on 8 January 2020, an extension of the incentive for investment in innovative and start-up companies for independent private investors by a further 18 months.
The incentive provides that a qualifying investment may be deducted from taxable income, with a limit equal to the lower of 50% of taxable income in a year or €150,000. Any surplus may be carried forward for up to five years.
Qualifying investments may be made directly or through an investment fund. Qualifying conditions for an invested company include that the company is operating in Cyprus, has been approved by the Ministry of Finance as a small or medium-sized enterprise (SME), and has spent at least 10% of its operating capital in R&D in at least one of the past three years. For new companies, approval may be made based on business plans.
The incentive first introduced from 1 January 2017 was due to expire the end of the 2019 but is now extended to 30 June 2021.