~3% Effective Rate on IP Profits
Cyprus IP Box applies an 80% deduction on qualifying IP income, reducing the effective CIT rate to ~3% on software licence, SaaS subscription, and royalty revenues.
Industry Guide
Reduce your effective IP tax rate to ~3% while keeping your product in an EU-regulated, English-common-law jurisdiction.
— Key Advantages
Cyprus IP Box applies an 80% deduction on qualifying IP income, reducing the effective CIT rate to ~3% on software licence, SaaS subscription, and royalty revenues.
Copyrighted software, algorithms, and related intangibles qualify for the IP Box provided the R&D nexus fraction is satisfied — no patent required.
Full EU market access, GDPR-compliant jurisdiction, VAT OSS registration, and EU payment rails — ideal for selling into European B2B markets.
Even outside the IP Box, Cyprus has one of the EU's lowest headline corporation tax rates at 15%, competitive with Ireland and far below the EU average.
Founders relocating to Cyprus under non-dom status pay 0% Special Defence Contribution on dividends — making profit extraction highly tax-efficient.
Incorporate fully remotely in 10–15 working days (expedited). No need to travel. English-language legal documents throughout.
— At a Glance
— The Process
Reserve your company name, prepare M&AA and HE1–HE3 documents, and file with the Registrar of Companies. Expedited: 10–15 working days.
Set up a Cyprus bank account or Revolut Business EUR account to receive SaaS subscription payments and pay local costs.
Transfer or develop IP within the Cyprus company to satisfy the IP Box nexus requirement. Our team advises on qualifying R&D expenditure.
Register for Cyprus VAT and EU VAT OSS if applicable. Annual accounts, CIT return, and UBO updates handled by our team.
— FAQ
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