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Calculate Qualifying IP Profit
Determine income attributable to the qualifying IP asset — royalties, licence fees, or embedded income separated from the overall business profit.
IP Box Advisory
Cyprus IP Box: 80% deduction on qualifying IP income under the Nexus Approach — ~3% effective rate. Eligibility, Nexus compliance, and annual filing included.
— The Mechanism
The deduction is calculated using the OECD Modified Nexus Approach, which links the IP Box benefit to the R&D activity that generated the IP.
— Eligible IP Types
— Self-Assessment Tool
Answer 10 structured questions based on the OECD Modified Nexus Approach to get an indicative eligibility assessment and estimated effective tax rate.
— Our Process
— Fee Schedule
Transparent, fixed-scope fees. Exact quote provided after your free initial assessment.
Total Estimated Investment
Exact fees depend on structure complexity. The initial consultation is free and will include a fixed-fee quote for your specific situation.
— Ideal Candidates
— IP Asset Reference
A complete reference table for qualifying and non-qualifying IP asset types under the Cyprus IP Box regime (2026).
| IP Asset Type | Qualifies? | Conditions | Effective Rate (2026) |
|---|---|---|---|
| Patents (granted) | Yes | Must be novel, non-obvious, useful | ~3% |
| Patents (pending) | Yes | Qualifying income from pending period | ~3% |
| Copyrighted software | Yes | Must be original, not trivial | ~3% |
| Utility models | Yes | Must be registered / legally protected | ~3% |
| Plant variety rights | Yes | Must be legally protected | ~3% |
| Orphan drug designations | Yes | Must be EU-designated | ~3% |
| Trademarks & brands | No | Explicitly excluded under BEPS Action 5 | Standard 15% |
| Customer lists | No | Not legally protected innovation | Standard 15% |
| Business goodwill | No | Not a qualifying IP asset | Standard 15% |
| Domain names (alone) | No | Not intellectual property under IP Box | Standard 15% |
| Marketing IP | No | Expressly excluded | Standard 15% |
— Worked Example
Scenario: SaaS company with €600,000 annual licensing revenue
This example assumes a 100% Nexus Fraction (all R&D performed by the Cyprus company or outsourced to unrelated parties). Your actual effective rate will depend on your specific R&D expenditure profile. This illustration does not constitute tax advice.
— Certainty & Protection
An Advance Tax Ruling is a formal written ruling from the Cyprus Tax Commissioner confirming how the IP Box regime applies to your specific IP asset before the regime is applied. While not legally required, it is strongly recommended for complex or high-value IP arrangements.
— Common Questions
Disclaimer: The IP Box eligibility test is indicative only and does not constitute legal or tax advice. Eligibility depends on your specific facts, IP documentation, R&D records, and the structure of your arrangements. Always seek professional advice before taking action. Effective tax rates assume a 100% Nexus Fraction — your actual rate will depend on your R&D cost profile.
Often paired with
Engagements coordinated with ICPAC-registered Cyprus tax advisers and Cyprus Bar Association member-firm lawyers. MOKAS-aligned under Cyprus AML Law 188(I)/2007. See our editorial standards and disclaimer.
“Walked into the call confused, walked out with a 4-step plan, fixed-fee quote, and a Cyprus company set up two weeks later. No surprises on the bill.”
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Book your free consultation. We'll assess your IP, R&D activity, and income profile to give you a clear picture of whether and how the IP Box applies to you.
Book a free Cyprus assessment. We'll confirm:
Important
The Cyprus IP Box regime is not automatic. Eligibility depends on the type of IP, ownership and licensing structure, qualifying R&D expenditure, the nexus fraction, documentation and tax analysis. The effective tax rate quoted is indicative and subject to your specific nexus calculation. Obtain a professional eligibility review before restructuring software or IP income.
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