2020 Cyprus Country Report

The multiplier
effect to the
local economy
by developing
the film
industry is
quite remarkable. It can first
of all create jobs, promote
our country worldwide and
act as a driving force for
the development of other
industries. Invest Cyprus
undertook the responsibility
of developing this industry
and promoting Cyprus as
a unique film destination,
starting basically from point
zero and today we are very
happy to see active interest
from many producers. Our
goal is long-term results; to
support the industry and the
Cyprus economy as a whole.
PACKAGE OF PERKS
A key achievement of the last two years was the
Council of Minister’s approval of the Cyprus film
incentive scheme, which is run by Invest Cyprus
– the country’s investment promotion agency –
with an annual budget of €25 million for reimbursement
purposes.
This development was crucial for the growth
of the Cypriot audiovisual industry, and will
also provide a boost to the overall economy with
significant investments and multiple benefits to
promote the country worldwide.
The package has a number of benefits aimed at
both local and foreign producers that opt to film in
Cyprus, one of which is a cash rebate or tax credit
of up to 35% on qualifying production expenditures.
Production houses can also benefit from tax
allowances of up to 20% for investment in infrastructure
and equipment, as well as Value Added
Tax (VAT) returns on expenditure in scope.
The first international film exclusively shot
in Cyprus using the 35% film incentive scheme
was Jiu Jitsu starring Nicolas Cage. It was directed
by Dimitris Logothetis and produced by Martin
J. Barab and Dimitri Logothetis. The film was
picked up by Highland Film Group (HFG), and
successfully completed shooting on the island in
August 2019. The feature is currently in post-production
and is expected to be released in 2020.
Within the scheme, the qualifying production
categories include feature films, television
films, series and mini-series, creative documentaries,
digital and analogue animation, television
research programmes and natural history
programmes. In addition, trans- and crossmedia
productions and reality programmes that directly
or indirectly promote the Republic of Cyprus
can also apply. Productions will also score extra
points if they satisfy a number of cultural criteria
such as hiring local actors in leading roles, highlighting
local or international cultural elements
and using the local language.
The new Cyprus Film Commission, which is
chaired by Invest Cyprus, also consists of representatives
of the Ministry of Finance, Ministry of
Education and Culture and the Deputy Ministry
of Tourism. The Commission is the responsible
body for examining all applications, while the
remit of Invest Cyprus is to promote the incentive
scheme abroad, facilitate productions and foster
connections with the local industry through
an online platform branded Film in Cyprus.
Interested parties can submit their applications
for the scheme through the portal, which also
provides more detailed information on qualifying
criteria. In addition, continuous support is
provided by Invest Cyprus in cooperation with
the relevant ministries and governmental departments
in matters such as permits, importing and
exporting equipment and other necessary instructions.
CREW AND PRODUCTION SUPPORT
Cyprus has a strong pool of multilingual professionals
working in the film and television sector
with international training and experience. An
added benefit is that English is almost universally
spoken on the island. Production and post-production
crew such as directors, producers, DPs,
camera operators, sound technicians, editors,
location managers, photographers, grips, gaffers,
production assistants, fixers, as well as wardrobe,
hair and make-up professionals can be found
relatively easily.
Sector Profile
Michalis P. Michael
Chairman, Invest Cyprus
Country Report CYPRUS 2020 89