On June 2, the Cypriot Parliament voted the Law on Income Tax (N.118 (I) 2002) which is to be granted to individuals and in real estate owners' companies for a tax deduction against the total income tax for the year 2020 in case of reduction of rents.

The tax credit will be equal to 50% of the monthly rent reduction granted voluntarily by the owner, provided that the reduction ranges between 30% and 50% of the monthly rent.

Note that:
1. The credit for reduction of rents based on Article 9E of the Law on Income Tax (N.118 (I) 2002), concerns only the tax year 2020.
2. Tax credit is valid for a maximum of 3 months within the tax year 2020, regardless of the number of the months for which a lease reduction has been agreed.
3. The reduction of rent presupposes a written agreement between the relevant parties.
4. Tax credit is not provided in case the owner and the lessee are affiliated parties accordingly
with the provisions of Article 33.
5. The tax credit that results from the application of Article 9E of the Income Tax Law (N.118 (I) 2002) may not exceed the amount of tax paid.