Can I Claim Plant, Machinery and Buildings as a Business Expense in Cyprus?
Yes. Plant and machinery receive 10% a year. Commercial buildings receive 3% and industrial, agricultural and hotel buildings 4%.
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What Tax Department (Τμήμα Φορολογίας), Ministry of Finance says
Plant and machinery receive an annual wear and tear allowance of 10%, straight-line on cost. Commercial buildings receive 3% and industrial, agricultural and hotel buildings 4%. The 2026 reform adds accelerated allowances for green and energy-efficiency capital expenditure up to 2030 and 25% for agricultural capital expenditure. Confirm asset-specific treatment with the Tax Department or a licensed practitioner.
When you can claim
- Machinery used in production
- Commercial buildings owned by the business
- Industrial, agricultural and hotel buildings
- Green or energy-efficiency capital expenditure, with accelerated allowances up to 2030
When you cannot claim
- Land, which does not qualify for wear and tear
- Assets used privately
- Assets with no invoice
- Costs already claimed elsewhere
Good to know
Pro tip: Ask a practitioner about the accelerated green allowances before buying energy-efficiency equipment.
Related expenses
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