Cyprus offers technology companies the potential of an effective
tax rate of 2.5% on profit resulting from exploitation of their
intellectual property, such as computer software, patents and other
intangible assets. This favourable tax regime is known as the
'IP Box'.
Qualifying intangible assets are intangible assets acquired,
developed or exploited in the course of carrying out a
company's business. Qualified intangible assets can
include:
- computer software
- patents
- other intangible assets which are non-obvious, useful and
innovative, used in the ordinary course of business.
Intangible assets can include utility models and non-obvious,
useful and novel IP, where utilised in a business does not generate
annual gross revenues in excess of €7,500,000 from all
intangible assets (or €50,000,000 in case of a group of
companies). Business names, brands, trademarks, image rights
and other intellectual property rights used for the marketing of
products and
