Cyprus
[CY] Decision by Commissioner for State Aid Control on the “Audiovisual Industry Promotion Scheme”
IRIS 2025-8:1/21
Antigoni Themistokleous
Cyprus Radiotelevision Authority
On 6 August 2025, the Office of the Commissioner for State Aid Control issued Decision No. 476 of 2025 concerning the State Aid Measure titled “Audiovisual Industry Promotion Scheme”. This State Aid Measure has been adopted within the government policy framework and is implemented through development, economic and fiscal incentives.
The objective of the Measure is to promote the audiovisual industry, to increase the activities of companies producing audiovisual works, and consequently enhance employment within the audiovisual sector and promote the Republic of Cyprus as a preferred filming location.
Eligible audiovisual works under this Scheme may include:
- Feature films and full-length films
- Television films (drama films)
- High-quality television series
- Digital and/or analogue animated films
- Creative documentaries
- Reality TV programs that directly or indirectly promote the Republic of Cyprus and its cultural heritage.
The following entities and/or actors may qualify as beneficiaries under this Measure:
- A special-purpose legal entity registered in the Republic of Cyprus or another EU Member State, which operates in the Republic of Cyprus
- A legal or natural person, whether Cypriot or European citizen, who is a tax resident of Cyprus.
The following incentives are granted to beneficiaries by the competent authority:
- Cast rebate
- Tax credit
- Tax deduction for investment in infrastructure and equipment
The Ministry of Finance is the competent authority responsible for the implementation and execution of this Measure, which is in effect until 30 June 2027 with an annual budget of €25 million.
Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty Text with EEA relevance (EU Regulation 651/2014) is the legal basis for the said Measure; specifically Article 54 – Aid schemes for audiovisual works.
References
- Ανακοίνωση Γραφείου Εφόρου Ελέγχου Κρατικών Ενισχύσεων με θέμα: «Σχέδιο Προώθησης Οπτικοακουστικής Βιομηχανίας»
- https://www.gov.cy/anexartitoi-axiomatouchoi/anakoinosi-grafeiou-eforou-elegchou-kratikon-enischyseon-me-thema-schedio-proothisis-optikoakoustikis-viomichanias/
- Statement of the Office of the Commissioner for State Aid Control titled "Audiovisula Industry Promotion Scheme"
- Απόφαση της Εφόρου Ελέγχου Κρατικών Ενισχύσεων που εκδίδεται δυνάμει του άρθρου 10 των περί Ελέγχου των Κρατικών Ενισχύσεων Νόμων του 2001 έως 2020, Εφημερίδα της Δημοκρατίας
- http://www.publicaid.gov.cy/publicaid/publicaid.nsf/All/07A86B875FAC75DDC2258CE3002F1B9E/$file/%CE%91%CE%A0%CE%9F%CE%A6%CE%91%CE%A3%CE%97%20476.pdf?OpenElement
- Decision by the Commissioner for State Aid Control concerning the “Audiovisual Industry Promotion Scheme” State Aid Measure. Official Gazette of the Republic.
This article has been published in IRIS Legal Observations of the European Audiovisual Observatory.