Annual Capital Allowances for Cyprus Companies and Cyprus entities
The annual capital allowances for Cyprus businesses known as wear and tear allowances (As approved by the Cyprus tax department), are calculated on the acquisition cost of the fixed assets as follows:
| Fixed Assets | % of capital allowances |
| Buildings (Note 1) | |
| Commercial | 3 |
| Industrial, agricultural, and hotel | 4 |
| Metallic frame of greenhouses | 10 |
| Timber frame of greenhouses | 331/3 |
| Machinery and equipment (Note 2) | |
| Plant and machinery | 10 |
| Furniture and fittings | 10 |
| Agricultural machinery and tools | 15 |
| Computers & Computer hardware | 20 |
| Intellectual Property – 5 years | 20 |
| Vehicles | |
| Motor vehicles other than saloon cars | 20 |
| Forklifts, tractors, excavators, bulldozers, oil tanks, and loading vehicles | 25 |
| Ships | |
| New commercial vessels | 8 |
| New passenger vessels | 6 |
| Sailing vessels | 4.5 |
| Steamers, tugs, and fishing vessels | 6 |
| Motor launches | 12.5 |
| Second-hand commercial and passenger vessels | over its remaining useful life |
| Loose tools | 331/3 |
| Videotapes of video clubs | 50 |
| Application software | |
| Over €1.709 | 331/3 |
| Up to €1.709 | 100 |
| Other | |
| Wind generators | 10% |
| Photovoltaic systems | 10% |
| New airplanes and helicopters | 8% |
Notes:
1. Industrial and hotel buildings acquired during the years 2012-2018 (inclusive) are eligible to Cyprus capital allowances /Cyprus tax depreciation at the rate of 7% per annum. For acquisitions after 1/1/2019 the Cyprus capital allowance /tax depreciation will be 4%.
2. Plant and machinery acquired during the years 2012-2018 (inclusive) are eligible to Cyprus capital allowances /Cyprus tax depreciation at the rate of 20% (excluding such assets which are already eligible for a higher annual tax rate of tax depreciation). For acquisitions after 1/1/2019 the Cyprus capital allowances /Cyprus tax depreciation will be 10%.
3. Any expenditure of a capital nature incurred for the development or acquisition of intangible assets may be claimed as a tax deduction and will be claimed on a straight-line basis in the tax year which it was incurred and the immediate four following years
4. Rates are amended in the case of second-hand buildings
How Can We Help
Please contact us to share any questions you have about the above topic
Contact details
Tel. +357 22 340000
Email: [email protected]
The authors expressly disclaim all and any liability and responsibility to any person, entity, or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.
Accordingly, no person, entity, or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.