Cyprus is home to a robust and attractive intellectual property (IP) regime that offers a comprehensive framework for protecting and managing IP assets, including patents, trademarks, designs, and copyrights.
The country’s IP laws are fully compliant with international standards and are designed to provide strong and effective protection to IP owners.
Intellectual Property (IP) can be one of the most valuable assets of an Organisation. Choosing the right location to setup your IP holding company is a very important business decision.
Cyprus offers one of the most efficient IP tax regimes in Europe coupled with the protection afforded by EU Member States and by the signatories of all major IP treaties and protocols.
The Cyprus IP Box regime is a tax incentive program offered by the Cyprus government to companies that own and exploit qualifying intellectual property (IP) assets. The new Cyprus IP Box regime was introduced on July 1st, 2016, and provides a reduced tax rate on income generated from qualifying IP assets, with the aim of promoting innovation and research and development (R&D) activities in Cyprus.
The Cyprus IP Box regime offers several benefits for companies that own and exploit qualifying IP assets.
Enhances competitiveness: Companies that own and exploit qualifying IP assets can benefit from a competitive advantage, as they are able to protect their intellectual property and generate income from the exploitation of their IP assets. This can help to enhance the competitiveness of these companies and position them for long-term success.
Assume that a Cyprus IP company licenses its IP to its operating foreign Companies and in return it receives royalty income of €1.000.000 per year.
The expected annual tax for the Cyprus IP Company will be as follows:
* Under the majority of Cyprus double tax treaties the withholding tax on royalty payments is 0%.