Cyprus Intellectual Property Rights Box

Introduced in 2012, the Cyprus intellectual property rights box regime offers a range of tax incentives and exemptions for the creation and exploitation of intellectual property. The scheme contrasts favourably against similar regimes in other European jurisdictions, providing significant advantages.

In May 2012, as part of a package of measures aimed at stimulating the island's predominantly service-oriented economy and promoting economic growth, the Cyprus government introduced an array of incentives and exemptions relating to investment in intellectual property rights, commonly known as an intellectual property rights box (''IP box'').

The concept of the IP box dates back to 2001, when France introduced a reduced rate of tax on revenue or gains deriving from the license, sublicense, sale, or transfer of qualifying IP. Since then, Belgium, Hungary, Ireland, Luxembourg, Netherlands, Spain and the United Kingdom have also introduced similar schemes. The underlying