NEXORACYPRUS

IP Tax Intelligence

Cyprus IP Box Calculator

Estimate the potential tax benefit of the Cyprus IP Box regime for qualifying intellectual property income. The effective IP Box rate can be as low as ~3% on qualifying profits under the OECD Nexus Approach.

Effective IP Box Rate:from 3%80% notional deduction:on qualifying IP profitOECD Nexus Approach:BEPS Action 5 compliant

IP Income & Costs

Royalties, licence fees, embedded royalties

All income derived from qualifying IP assets — patents, copyrightable software, utility models. Trademarks do not qualify.

€
Costs attributable to IP income

Expenditure directly and exclusively attributable to generating the IP income. Not general overheads.

€

Nexus Fraction

The nexus fraction determines what proportion of qualifying IP profits benefits from the 80% deduction. Formula: (Qualifying R&D × 1.3) ÷ Total R&D

80%
0% — all outsourced to related parties100% — own R&D
5.40%
Effective Rate
€43,200
IP Tax
€76,800
Tax Saved

IP Box Computation

Total IP Income€1,000,000
Less: Direct IP Costs(€200,000)
Qualifying IP Profit€800,000
Nexus Fraction80.00%
IP Box Deduction (80% × nexus)(€512,000)
Taxable IP Income€288,000
Corporate Tax @ 15%€43,200
Effective IP Tax Rate5.40%

vs. 15% standard rate — saving €76,800 annually

EU IP Box Comparison

Cyprus (your estimate)
5.40%
Belgium3.75%
Luxembourg6.80%
Netherlands9.00%
Ireland10.00%
UK10.00%

Ready to implement the IP Box?

We assess your IP structure, compute the correct nexus fraction, and prepare all required documentation.

IP Box Advisory

Indicative estimates only. Not tax advice. IP Box eligibility requires proper documentation, nexus fraction computation, and ongoing compliance. Consult a qualified Cyprus tax adviser.

IP Box Eligibility

Check Your IP Box Eligibility

Answer 10 quick questions to see whether your intellectual property qualifies for the Cyprus IP Box regime — and get a preliminary estimate of your effective rate.

Cyprus IP Box Eligibility Assessment

10 questions — based on Article 9(1)(k) Cyprus Income Tax Law & the OECD Modified Nexus Approach

This assessment helps you determine whether your intellectual property income may qualify for the Cyprus IP Box regime — the most competitive IP tax regime in the EU, offering an effective tax rate as low as ~3% on qualifying profits under the 15% CIT rate.

~3%
Effective rate on qualifying IP profit
80%
Notional deduction on qualifying profit
OECD
Modified Nexus Approach — BEPS Action 5
About this assessment

This tool covers IP asset type, development method, R&D expenditure, income type, Cyprus substance, the nexus fraction, marketing IP exclusions, group structure, and beneficial ownership. Results are indicative only — a formal advance tax ruling is required before claiming the regime.