Cyprus: Increased capital allowances for “green” investments

Tax years 2023-2026

Tax years 2023-2026

Law N.45(I)/2024 (published in the official gazette on 12 April 2024) increases capital allowances on capital expenditure incurred during the tax years 2023-2026 for:

  • Improving the energy efficiency of buildings—at the rate of 7%
  • Technical systems used for improving the energy efficiency of buildings, renewable energy systems, and electric energy storage systems (batteries)—at the rate of 20%
  • Electric vehicles—at the rate of 33.3%

Read an April 2024 report prepared by the KPMG member firm in Cyprus



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