Cyprus · SaaS · IP Box ~2.5%
15% headline CIT becomes ~2.5% effective on qualifying software income via the IP Box (80% deduction). Combined with 17-year non-dom 0% SDC on dividends, the full-extraction tax rate drops below most EU alternatives. Set up in 10 working days.
Free 30-min consultation. Reply within 24h.
— WHAT YOU GET
Qualifying intellectual property — proprietary code, patents, copyrighted software — gets 80% deduction on profit. Effective rate: ~2.5%. Modified-nexus compliant (OECD BEPS-ready). Requires R&D substance in Cyprus, which we structure for you.
After the company pays ~2.5% on IP income, you distribute as dividend. Non-dom (17 years): 0% Special Defence Contribution. Combined founder full-extraction rate: ~2.5% — among the lowest in the EU and dramatically below Portugal (post-NHR), Ireland (12.5% + 25–33% dividend), or Germany (~30%).
We file an Advance Tax Ruling (ATR) with the Cyprus Tax Department to lock in IP Box treatment before you start generating revenue. ATR window: 3–6 months. Required substance: local development team or contracted R&D activity (we set both up).
Cyprus Ltd structures are widely accepted by EU VCs. We coordinate with your lead investor's counsel for shareholders' agreement, vesting, option pool, and Cyprus-law board mechanics. Cyprus is also IPO-compatible (LSE, Euronext) without restructuring.
— EVERYTHING INCLUDED
— PROCESS
Discuss your stage (pre-revenue, post-Series A, etc.), IP ownership today, founder residence plan. We model effective tax under Cyprus vs your current setup.
Register Cyprus Ltd, prepare IP-transfer documents (or fresh IP creation), set up Cyprus development substance (R&D team, lease, etc.).
File Advance Tax Ruling with Cyprus Tax Department. Confirms ~2.5% effective rate for the specific IP. Locks the regime against future audits.
Monthly bookkeeping, quarterly VAT/VIES, annual IR4 + audit + IR1 (personal). Reply within 24h via senior adviser, not call-centre.
We deliver a written IP Box methodology — qualifying-IP characterisation, nexus fraction, expense attribution — that withstands Cyprus Tax Department review. If a successful challenge invalidates the methodology purely because of our own error, we redo the work at no cost.
— COMMON QUESTIONS
Probably yes. Cyprus IP Box covers: patented inventions, copyrighted software (including SaaS code), and certain assets developed through R&D. The qualifying income is the proportion of profit attributable to the IP, measured via the OECD modified-nexus fraction (your in-house R&D / total R&D + acquisition cost).
Best time to set up. Pre-revenue, the IP is unencumbered and easy to transfer to Cyprus. Post-revenue/post-funding IP transfers can trigger valuations + capital gains in your current jurisdiction. We work with founders pre-Series A regularly.
For the company: substance is required (R&D team in Cyprus). For you personally: only if you want the non-dom personal benefits (0% SDC on dividends). Non-dom requires Cyprus tax residency under the 60-day rule (minimum) or 183-day rule.
Standard EU VCs accept Cyprus Ltd HoldCos without issue. We handle the SHA, board mechanics, share-class structure. Cyprus has been used by exits to NASDAQ/LSE/Euronext multiple times — diligence-ready.
Formation tier (Basic €2,499 + VAT or Business €3,699 + VAT — see /pricing/company-registration), plus annual accounting tiered by transaction volume (€800–€4,800 + VAT/yr — see /pricing/accounting-and-audit), plus ATR Preparation (€4,000–€5,500 + VAT one-time) and ATR government fee (€1,000 standard or €2,000 expedited, at cost). We quote against your actual facts at the engagement-letter stage.
Reply within 24 hours from a senior adviser. No obligation, no upfront fee.