- 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% or Less
- Profits reduced in operating country
- Use of treaty network
- Credit in Cyprus for withholding tax in 3rd country (if any)
- Small margin taxable in Cyprus at 12.5%
- No withholding taxes on payments outside Cyprus
Intellectual Property (IP) is a legal concept which refers to creations of the mind for which exclusive rights are recognized. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property rights include copyright, trademarks and patents.
Cyprus is increasingly becoming an attractive jurisdiction for IP companies due to its favourable tax legislation in respect of taxation of IP royalties etc.
The new IP Regime: