INTELLECTUAL PROPERTY
Cyprus offers a competitive IP Box Regime designed for companies that develop, own or exploit Intellectual Property (IP) such as software, patents, trademarks and know-how. When structured correctly, it can significantly reduce the effective tax rate on qualifying IP income.
What Is the IP Box Incentive?
The Cyprus IP Box Regime provides a preferential tax treatment for income derived from qualifying intangible assets. In practice this can mean a lower effective corporate tax rate down to 2.5% on:
We work with your management and technical teams to map IP assets, revenue streams and R&D activities to the Cyprus rules.
Standard Rate
Normal corporate tax
15%
IP Box Rate
Effective rate on qualifying IP
2.5%
Savings
Reduction on IP income
80%
QUALYFING IP
Types of Intellectual Property
The regime is aimed at companies that own or license qualifying IP, conduct R&D activities, and can track related income and expenses.
Software
Custom software, platforms, and applications
Patents
Registered patents and inventions
Know-how
Proprietary formulas and processes
Trade Secrets
Protected business information
What Can Be Taxed Under IP Box?
We review your residency history, citizenships, prior connections and future intentions to confirm eligibility.
ELIGIBILITY
Who Is Eligible?
Aqualis will assess your group to determine whether a Cyprus company, branch or restructuring is appropriate for IP, and how to align this with transfer pricing and substance requirements.
Own Qualifying IP
Software, patents, formulas or protected know-how
OUR SUPPORT
How to Apply and Maintain Compliance
Our support usually includes the following steps:
01
Feasibility
Initial Assessment
Review your IP assets, R&D activities and group structure to determine suitability
02
Design
Structure Planning
Design Cyprus IP structure including entity setup, contracts and intra-group arrangements
03
Documentation
Compliance Setup
Maintain documentation needed to support IP Box claims and tax compliance
04
Review
Ongoing Monitoring
Monitoring changes in business models, transfer pricing and international guidance that may affect the regime.
Speak to our international tax advisory team to explore whether the Cyprus IP Box Regime fits your long-term plans.
Free initial consultation
Response within 24 hours
No obligation
Aqualis, based in Cyprus, is an independent firm of Chartered Accountants and a practicing member of ICPAC and ICAEW.
We offer expert tax, advisory and audit services with integrity and innovation, delivering tailored solutions for the dynamic international markets and guiding businesses.