Cyprus: Legislation providing tax benefits for companies implementing energy upgrades passes Parliament
The Plenary of the Parliament approved legislation providing tax benefits to companies implementing energy upgrades.
Legislation providing tax benefits for companies implementing energy upgrades passes
The Plenary of the Parliament unanimously approved legislation providing the following tax benefits for legal and natural persons engaged in economic activity within the tax years 2023, 2024, 2025, and 2026 for the purpose of energy upgrade and energy saving:
- Increased deduction from 25% to 33% for capital expenditure incurred in purchasing commercial electric vehicles, buses, and taxis
- 7% deduction for capital expenditure incurred to improve the energy performance of buildings
- 20% deduction for capital expenditures incurred for technical energy efficiency systems in buildings, renewable energy systems, installation of electric vehicle recharging stations, as well as for the purchase and installation of batteries
- Exemption for expenses incurred for the preparation of an energy saving study
Read an April 2024 report prepared by the KPMG member firm in Cyprus
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