Other initiatives
Innovation and entrepreneurship are heavily sought after by
countries looking to ameliorate and modernise their economies.
Cyprus is no different in this respect and has prioritised creating
a vibrant landscape which addresses the needs of start-ups and
their investors. The defining features of the Cypriot system are
its IP box regime, notional interest deduction (NID), alternative
investment funds (AIFs) and various tax incentives which can be
coupled with research and development and innovation.
IP box regime
Cyprus's IP box regime complies with Organisation for
Economic Cooperation and Development guidance and EU standards
while simultaneously providing attractive prospects for companies
in the technology sector. This includes start-ups, which can
benefit from tax allowances on a range of qualifying assets (eg,
patents, copyright, computer software and other intangible assets).
The IP box regime provides for up to 80% of qualifying profits
