Cyprus Intellectual Property Box (IP)

Under the new regime, 80% of qualifying profits granted from qualifying assets will be deemed to be tax deductible expenses. As a result, the profit from IP can be taxed with an effective tax rate 2,5% or less.

The advantages are the following:

  • Effective Tax rate of 2,5% or Less
  • 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 for 5 years
  • Gross IP income reduced by expenses incurred for the production of IP income
  • Competitive amortization provisions over a 5 year period

For further details, please refer to our publications “Cyprus intellectual Property Regime”

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