Features

Cyprus IP Box Regime

2.5% Tax on IP Income

80% Profit Exemption

OECD & EU Compliant

Global IP Tax Benefits

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Summary

What Is the Cyprus IP Box Regime?

The Cyprus IP Box Regime is a tax incentive designed to encourage innovation by reducing the tax burden on intellectual property (IP) income. Companies can enjoy an effective tax rate of just 2.5% on qualifying IP income, with features including:

80% Profit Exemption: Taxable profits from qualifying IP are reduced by 80%, lowering the corporate tax rate from 12.5% to 2.5%.
International Credibility: Fully aligned with OECD guidelines and EU standards, ensuring transparency and compliance.
Global Accessibility: Available to both local and international companies operating in Cyprus.

Whether you’re monetising patents, software, or other IP assets, the Cyprus IP Box Regime offers an ideal environment for maximizing profits and fostering innovation.

Core Benefits

Key Benefits of the Cyprus IP Box Regime

2.5% Effective Tax Rate: One of the world’s lowest rates on qualifying IP income.
80% Profit Exemption: Substantial tax savings through an 80% exemption on profits from qualifying IP.
No Capital Gains Tax: Exemption on profits from the sale of qualifying IP assets.
OECD and EU Compliant: Internationally recognised for transparency and fairness.
Extensive Double Tax Treaties: Minimise international tax exposure while expanding your global reach.

Eligibility

Requirements for the Cyprus IP Box Regime

Find out if you qualify

To benefit from the Cyprus IP Box Regime, companies must meet the following criteria:

Cyprus Tax Residency: Your company must be incorporated and tax-resident in Cyprus.
Qualifying IP Assets: Eligible assets include patents, software, trademarks, and other IP rights actively developed or used by the company.
Qualifying IP Income: Revenue must come from licensing fees, royalties, or the sale of qualifying IP assets.
Detailed Record-Keeping: Maintain comprehensive financial records to support claims for tax benefits.

What we offer

What’s Included in Our Cyprus IP Box Regime Service

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Our service simplifies the process of securing IP Box benefits while ensuring compliance and maximizing tax savings. Here’s how we help:

Initial Consultation and Assessment

We begin with a detailed review of your intellectual property portfolio and corporate structure to evaluate eligibility and tailor our approach to your business goals.

Strategic Corporate Structuring

Our experts provide guidance on restructuring or setting up your company to meet IP Box requirements, ensuring maximum tax efficiency.

‍Application Preparation and Submission

We handle all aspects of the IP Box application, including documentation, financial analysis, and crafting a strong case for tax benefits.

Liaison with Tax Authorities

Our team manages all communications with Cyprus tax authorities, addressing queries and ensuring a smooth application process.

Ongoing Compliance Support

We provide ongoing guidance to ensure you remain compliant with IP Box regulations, maximizing benefits for the long term.

Testimonials

What Our Clients Say

See how Clover has helped people like you relocate, save taxes, and build a better future in Cyprus.

Anastasia

Sole Proprietor

I loved the approach...

I loved the approach to the task a had as a client. Very attentive and deep way of working. I had an excellent consultation on my new business and recommend Clover service to anyone who needs a real professional and highly-qualified consultant.

Edith

High-Skilled Professional

Thank you for amazing support

Thank you, guys, for the amazing support! You made everything so easy and stress-free when I needed help with company relocation. Super professional, clear advice, and always ready to answer my questions. Highly recommend Clover.Tax to anyone looking for expert help in Cyprus!

Sam

High-Skilled Professional

What impressed me...

What impressed me most about this team was their personalized approach. They will take the time to understand your specific needs and concerns, and tailor their services accordingly. They are incredibly responsive and helpful throughout the entire process, making you feel supported and valued. I would highly recommend them to anyone considering a move to Cyprus.

Anette

Business Owner

Amazing service!

I highly recommend Clover! Excellent service with clear, practical advice on corporate structuring, tax optimization, and relocation benefits. Their deep understanding of Cyprus’s regulations was invaluable.

relevant information

Frequently Asked Questions

What is the Cyprus IP Box Regime?

It’s a tax incentive that reduces the tax rate on qualifying intellectual property income to just 2.5%.

What types of IP qualify for the Cyprus IP Box Regime?

Qualifying IP includes patents, software, trademarks, and other intangible assets actively developed or used.

Who can benefit from the IP Box Regime in Cyprus?

Both local and international companies incorporated and tax-resident in Cyprus can benefit.

What is the tax rate under the Cyprus IP Box Regime?

Qualifying IP income benefits from an effective tax rate of just 2.5%.

Does the IP Box Regime comply with international standards?

Yes, the regime aligns with OECD guidelines and EU standards for tax transparency and fairness.

Is capital gains tax applicable to the sale of IP assets?

No, profits from the sale of qualifying IP assets are exempt from capital gains tax in Cyprus.

What records are required to qualify for the IP Box benefits?

Detailed financial records must be maintained for each qualifying IP asset, including income and expenses.

Can foreign companies access the Cyprus IP Box Regime?

Yes, foreign companies can incorporate in Cyprus and benefit from the IP Box regime.

How long does it take to set up a Cyprus IP Box structure?

The timeline depends on the complexity of your business and intellectual property portfolio. Our team ensures a streamlined process tailored to your specific needs.