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The formation of the island
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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.
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