Intellectual Property (IP) can be one of the most valuable
assets of an organization. Choosing the right location for the
centralization and management of IP is a very important strategic
business decision. The ideal location to establish an IP structure
is one that can serve the organization's business
strategies/model, safeguard and protect its IP and contribute to
its tax optimization.
Overall Cyprus IP Box regimes provides an effective tax rate of
2.5% - the lowest in the EU! By exempting from corporation tax the
80% of royalty profit, the other 20% of the IP income after
deducting all costs relating to the generation of the income is
subject to 12,5% corporate tax. Applying the Cyprus corporate
income tax rate of 12.5% produces an effective tax rate of 2,5% of
the net income.
