There has been a significant increase in interest from businesses abroad to establish and/or incorporate a Cyprus company to be the owner of its intellectual property. This interest stems from the beneficial IP Box regime introduced in Cyprus in 2012 and specifically provides for the following:
• 80% of worldwide royalty income generated from IP owned by Cypriot resident companies, net of any direct expenses is exempt from income tax
• 80% of profit generated from the disposal of IP owned by Cypriot resident companies, net of any direct expenses is exempt from income tax
• any expenditure of a capital nature for the acquisition or development of IP is claimed as a tax deduction in the year in which it was incurred and the immediate four following years on a straight-line.
Cyprus’ advantage as a business centre is reconfirmed not only because of the introduction of the IP Box, but also because of the attractive 12,5% Cyprus company tax rate and the extensive network of double tax treaties ratified by Cyprus.
IP owners , using Cyprus as the basis for their business can receive unquestionable tax savings!
In case you need to learn more, kindly send us an email to info@ipcyprus.com
