COMPENDIUM CULTURAL POLICIES AND TRENDS IN EUROPE
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Cyprus/ 5.1 General legislation  

5.1.5 Tax laws

The current Value Added Tax law in Cyprus provides, as an exception from the regular rate (19%), a lower 5% tax rate for books and periodic publications. but it does not cover e-books. The lower 5% tax rate also applies for tickets to cultural events, including movie theatres, as well as for services provided by the artists themselves (i.e. works sold directly by the artists, commissioning fees etc.)

Furthermore, Value Added Tax is not imposed on the supply of goods and services of a cultural nature, which are promoted by not for profit organisations (i.e. services provided by such an association to its members etc.).  Currently no reduced VAT is applied to any services in digital form, although there are some discussions going on for exceptions. 

According to the Income Tax Law of 2002 - No. 118(Ι), article 8 (13), the income of any religious, charitable or educational institution of a public character shall be exempt from the taxation.  Article 9 (14) of the Income Tax Law also permits deductions from the chargeable income of any person for donations or contributions made for educational, cultural or other charitable purposes to the Republic or a Local Authority or to any charitable institution approved as such by the Council of Ministers:

Also a wide range of tax exemptions are offered to the owners for the restoration of Listed Buildings and Ancient Monuments (Schedule B) such as:

  • exemption of the restoration cost from income tax of the owner;
  • exemption of rents from income tax;
  • exemption from property tax; and
  • refund of property transfer tax.

To be eligible for tax relief, the Director of Town Planning and Housing (for Listed Buildings) and the Director of Antiquities (for Ancient Monuments) must issue a restoration certificate (issued once restoration works have been completed satisfactory).


Chapitre publié: 05-10-2015

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