North Cyprus Inform

Investment Incentives

Foreign investment is actively encouraged and those wishing to invest in North Cyprus can be sure of a positive government attitude. Here, we propose a short summary of the incentives:

• Leasing of land for extended periods at favorable rates.
• Import duty exemptions for goods concerning the project.
• Government contribution to charter risk.
• Contribution to brochure/advertisement expenditure up to 75%.
• Exemption from income tax and corporation tax for a period of ten years in the case of investment in tourist accommodation units.
• For public companies which have shareholders in excess of 50, tax exemption can be extended.
• Annual interest and principal instalments of foreign loans enjoy a transfer guarantee.
• Tourism establishments or hotels may deduct each year 20% of their annual foreign exchange gross earnings from taxable income.
• Free transfer of proceeds in case of liquidity of investments.
• Repatriation of profits without restrictions or limitations.
• Employment of foreign personnel who are not available locally.
• Transfer of net income earned by foreign personnel is free.
• Exemption of constriction license fee.
• Also deductible when calculating annual taxable profit are all travel expenses related to promotion and marketing, plus all kinds of advertisement, promotion and marketing expenses.