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Tax incentives for start-ups

28/07/2016 08:51
The Cyprus government approved a package of tax incentives to boost the start up sector and innovation in Cyprus, Undesecretary to the President Constantinos Petrides said on Wednesday.

The package includes a 50% tax exemption on investments in innovative and start up companies.

“The Council of Ministers has approved a significant package of tax incentives for innovative and start up firms which we believe greatly assist the entrepreneurship and innovation in Cyprus,” Petrides said in statements following a meeting of the Council of Ministers.

He added the package was approved following intensive consultations with the start up community in Cyprus, noting the government promotes practices that have been implemented in many other countries, noting the exemption covers both an investment both to an investment fund as well as an investment made directly to a company either managed by natural or a legal person.

Petrides added the maximum annual amount to be exempted is €150,000.

The Undersecretary also said the government has broadened the term innovative firm.

“The decision is not limited and can now be used more efficiently by businesspeople and young businesspeople with innovative ideas that can evolve in entrepreneurship and commercial products,” he concluded.