The Cyprus IP-Box Regime

Simultaneously with all other EU countries, Cyprus adopted a new IP Box Regime as per the provisions of the OECD BEPS Action 5 and the new EU rules for the tax treatment of profit from the utilisation of intellectual property.

Transitional provisions for IP assets under the old Cyprus IP Box Regime

The old Cyprus IP Box regime from 2012 covers intellectual property assets as per:

• the Patents Law,
• the Trade Marks Law and
• the Intellectual Property Rights Law.

Effectively, the old Cyprus IP Box Regime provided for an exemption from taxation of 80% of the gross income from the use of the intellectual property assets.

Transitional provisions for persons who have benefited from the old IP Box regime enable them to continue benefiting from the old IP Box Regime until 30 June 2021, with respect to IP assets which: