Cyprus introduced new tax measures regarding the taxation of Intellectual Property, known as the Cyprus IP Box Regime, which entered into force on the 1st of January 2012.

Take advantage of the Cyprus “IP Box” Tax Regime

The Cyprus IP Box Regime in a nutshell

Why Cyprus?

  • The lowest tax regime on IP rights in Europe (maximum 2% tax on profits generated from IP);
  • The registration of the IP in Cyprus is not required. The IP can be registered anywhere in the world, however the registered holder should be a Cyprus Company;
  • The Cyprus IP Box Regime can be applied to both acquired and self-developed IP assets;
  • Broad definition of the eligible IP rights;
  • Part of all major international IP treaties and protocols;
  • Vast network of double tax treaties.

Very broad range of eligible intangible assets

  • Copyrights, including films, sound recordings and musical works, broadcasts, publications, software programs, literary works, scientific works, etc.;
  • Trademarks and designs;
  • Patents.

Tax benefits

  • 80% of royalty income (net of any direct expenses) generated worldwide from IP owned by Cyprus companies is exempt from income tax.
  • 80% of profit (net of any direct expenses) generated from the disposal of IP owned by Cyprus companies is exempt from income tax.
  • Any expenses related to the acquisition or development of IP can be claimed as a tax deduction in the year in which they incurred and the immediate four following years on a straight-line.
  • The aforementioned exemptions are also applicable for IP acquired or developed before January 2012

Why choose AGP?

We can advise you on the following areas:

  • interpretation & implementation of the Cyprus IP Box Tax Regime;
  • interpretation & implementation of the double tax treaties;
  • elaboration of tax efficient IP strategies;
  • and we can provide you with ongoing support.