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Intellectual Property Tax Planning

New tax measures are continuously being considered by governments around the world with attention to Intellectual Property (IP) tax.  This has inevitably resulted in companies considering IP tax planning by migrating IP from one tax jurisdiction to other lower tax jurisdictions. 

We advise you on considering different IP tax regimes of various jurisdictions which will have different financial results to your end tax rates.    

We further advise you on the manner and methods of transferring IP, being intangible property, to a structure which will have substantial impact on the tax results of your company while at the same time you ensure that all substantial rights are successfully being transferred for tax purposes, achieving therefore the end result.   

Take advantage of the Cyprus "IP Box" Tax Regime

Cyprus offers the lowest tax regime on IP rights in Europe (maximum 2%) while protected by EU regulations on IP and by the fact of Cyprus being a member of all major international IP treaties and protocols. 

To take advantage of the Cyprus low tax regime on IP you do not need to have the IP registered in Cyprus; it may be registered anywhere in the world but through a Cyprus company (i.e. the Cyprus company will be the registered holder of the IP).  IP includes the following intangibles:

  • Copyrights (such as films, sound recordings and musical works, broadcasts, publications, software programs, literary works, scientific works, etc.);
  • Tademarks and designs;    
  • Patents.

Maximum 2% Tax on Profits generated from IP

Having any type of intellectual property registered through a Cyprus company will benefit you from enjoying an 80% tax exemption of your worldwide income from IP use (lease or sale).  In other words, the maximum effective tax rate on your income generated through the use of your IP through Cyprus will be as low as 2%, while at the same time benefiting from Cyprus' wide double tax treaty network.   

Contact us for more details about Cyprus "IP Box" Tax Regime.

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