Cyprus Intellectual Property Box

Cyprus Intellectual Property Box 2017-12-29T10:59:04+00:00

A Cyprus Royalty Company can benefit from an effective tax rate of 2,5% or less on net income from the exploitation of IP rights and on gains arising on the disposal of IP rights.

The advantages are the following:

  • No withholding taxes on Royalties payable to non-resident, when the right is used outside Cyprus
  • For rights used in Cyprus there is 10% withholding tax unless a Double Tax Treaty provides for a lower rate of the EU Interest/Royalties directive applies.
  • An 80% exemption on royalty and capital gains upon disposal of IP
  • Losses can be carried forward indefinitely
  • Gross IP income reduced by expenses incurred for the production of IP income
  • Competitive amortization provisions over a 5 year period
  • Wide range of qualifying IP rights; Effective Tax rate of 2,5% or Less