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Cyprus · SaaS · IP Box approximately 3%
15% headline CIT becomes approximately 3% 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.
Request a free 30-minute initial consultation.
— WHAT YOU GET
Qualifying intellectual property — proprietary code, patents, copyrighted software — gets 80% deduction on profit. Effective rate: approximately 3%. Modified-nexus compliant (OECD BEPS-ready). Requires R&D substance in Cyprus, which we structure for you.
After the company pays approximately 3% on IP income, you distribute as dividend. Non-dom (17 years): 0% Special Defence Contribution. Personal GHS contributions and any foreign tax exposure require separate review.
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 approximately 3% effective rate for the specific IP. The ruling depends on full disclosure, the stated facts and applicable law.
Monthly bookkeeping, VAT/VIES where applicable, annual TD4 / IR4 and audit or eligible review, plus personal filings where included in the engagement.
The written methodology records the qualifying-IP analysis, nexus fraction, expense attribution, assumptions and supporting evidence. Tax-authority acceptance cannot be guaranteed.
— 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 €2,300 + VAT or Business €3,900 + VAT — see /pricing/company-registration), plus annual accounting tiered by transaction volume (€2,100–€4,800 + VAT/yr for active companies — 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.
Send your enquiry for a no-obligation initial review.