Intellectual Property Structures Prosper In Cyprus

For companies active in the development and licensing of intellectual property (IP) rights, efficient ownership structuring is vital. The direction of the relevant licence payment is also important so as to make transactions as tax efficient as possible.

Cyprus has positioned itself among the best tax planning jurisdictions around the world for intellectual property related structures. Cyprus royalty companies generally undertake the ownership of royalties and licensing rights for intellectual property.

Cyprus royalty companies are, just like all Cyprus resident companies, subject to 10% corporate income tax on their worldwide income.

Royalties received in Cyprus

Profits derived by a Cyprus royalty company with respect to income from royalties are subject to 10% corporate income tax. The tax is imposed after the deduction of any royalty payments as well as expenses incurred wholly and exclusively for the production of income. Equally, Cyprus income tax