A Favourable IP Regime

Cyprus Intellectual Property “IP” RegimeMain Benefits

Cyprus IP Box Regime protects the IP but also offers economic-tax benefits.

Tax Benefits

An organisation may achieve an effective tax rate of 2.5%.  

Cyprus’s IP Regime entails a Tax Benefit which provides for an 80% exemption of income from and gains on the sale of Qualified IPs coupled with the 12,5% Cyprus Income Tax rate it may in some cases reduce the effective tax rate up to 2.5%.

Royalty Income: A Cyprus tax resident company that holds IP rights and derives royalty income, after deducting directly related expenses, is allowed a tax amortisation of 20%.

Cyprus’ wide double tax treaty network and access to the EU Interest and Royalty Directive serve as additional means for the group to achieve tax optimization when it comes to IP exploitation through Cyprus.

Other Benefits: Cyprus’s IP tax regime is considered the most favourable in Europe, affording the maximum protection, stability, and assurance for IP owners. It has been reviewed by the EU Cod of Conduct and has been assessed as fully compatible with EU standards.

Why protecting your intellectual property is necessary.

Protecting your IP is a must in the digital age. It is the only legal way to avoid having your unique ideas, products, or services copied or used without permission.

  • Intellectual Property (“IP”) can be one of the most valuable assets of an organization, which may be sold or used for other commercial purposes for a fee.
  • By granting a patent, you acquire exclusive rights to use and exploit your invention.

A patent is granted by the Intellectual Property Section

Qualified IP Assets

Eligible IP assets shall include a wide range of intangibles including:

  • Copyrights, which may take any of the following forms: Literary works, Dramatic works, Musical works, Scientific Works, Artistic works, Sound recordings, Films, Broadcasts, Published editions, Databases, Publications, and Software programmes;
  • Patented inventions.
  • Trademarks (and service marks), designs and models that are used or applied on products The above is a non-exhaustive list. Registrable IPs need not be registered in Cyprus to benefit from the IP regime.

What F.C.I. LTD can do for you?

• Cyprus IP holding structures and initial set-up

• Corporate statutory compliance matters

• Existing IP – tax efficient transfer to Cyprus IP company

• Eligibility of tax depreciation

• IP-related substance

• Ongoing corporate and statutory compliance matters.

Contact us to find out how to protect your assets.

Book a preliminary teleconference consultancy meeting.

Contact us by email: or Tel: +357 22 673800

The information in this leaflet is provided for general purposes only and does not constitute legal or other advice @F.C.I. LTD 2023