Cyprus: Intellectual Property

For many businesses, the trade mark is one of the assets customers encounter most often. They may never know the company’s corporate structure or who owns its premises, but they will recognise its name, logo or product branding.

Did you know Cyprus lets you pay an effective tax rate of just 3% on qualifying intellectual property income? Kyriakos Tramountanellis FCA explains how the Cyprus IP Box regime works: 80% of qualifying profits from patents and copyrighted software are deducted, so you are taxed on only 20% — one of the most competitive, fully OECD-compliant IP regimes in Europe. If you develop software, own patents, or earn royalty income, this could transform your tax position.

As the technology sector continues to evolve, intellectual property (IP) sits at the core of value creation for software developers, tech companies and innovation-driven businesses. Whether in the form of proprietary software, algorithms, platforms or other digital assets, IP often represents the most significant and scalable component of a business.