Cyprus is the ideal country for establishing an IP Holding and Development Company, comply with the domestic Intellectual Property law. Cyprus with an attractive and efficient tax regime, combined with 65 Double Tax Treaties, comply with EU, OECD and WIPO standards and requirements, our domestic IP Box regime provides opportunities for international companies to gain immediate financial benefits and incentives for their protection of valuable IP assets.
Cyprus IP Box Regime
We offer 80% deduction of revenue earned from the use of intangible assets. In other words, it means that only 20% of IP income is taxed at our domestic corporate tax rate of 12.5%. When a Cyprus resident company makes their calculations, can see our effective tax rate as low as 2.5%.
In 2016, the House of Representatives amended the Income Tax Law. This effort was made in order to meet the IP tax legislation provisions of the OECD. This effort it introduced the nexus fraction to determine the amount of qualifying profits that will provide the relevant tax exemptions and deductions.
The nexus fraction factor approach in the overall income with qualifying expenditure, uplift expenditure and overall expenditure in an additive approach that takes into account all expenditures being incurred directly by the taxpayer over the lifetime of the IP asset.
The Intellectual Property Law of Cyprus and its IP Box regime are largely responsible for the growing interest of IT companies, most notably those performing asset management. In the Digital Era that we currently live in, digital goods are more valuable than ever and the favorable tax and business environment in Cyprus has made it a harbor for digital business goods, IT software and other related services.
Advantages for Intellectual Property Law of Cyprus
• A Strategic Location.
In the Crossroad of three Continents, Europe, Africa and Middle East, Cyprus is a destination for businesses looking to be connected across all the continents and markets.
• Higher Quality of Life.
Cyprus offers an affordable cost of living, low crime rate, a leading healthcare system, excellent knowledge and expertise in the legal and financial sector, and most importantly it is a foreign friendly country for any foreign employee.
• Language Accessibility.
As an ex colony of the United Kingdom, Cyprus business language remains the English language. This is an advantage for any international investor(s), doing business in Cyprus, because Cyprus comes with no language barriers.
• A skilled Workforce.
There are over 20 public and private internationally recognized universities and institutions of higher education ensure that graduates entering the workforce are some the most highly skilled, competitive employees to international companies establishing their operations in Cyprus.
• Infrastructure Investments.
Every year millions of Euros are being committed to further enhance the infrastructure of Cyprus and make it competitive on an international level. These investments have made Cyprus 54th for doing business and 44th in global competitiveness.
• Attractive Tax System.
The Intellectual Property Law of Cyprus, provides a tax rate of 2.5%, almost half the rate of our closest competitors, such as Belgium (3.8%) and Hungary (4.5%). Tax rates for other IP Box regimes range from 2.5% to 10%, with Cyprus offering the lowest tax rate in Europe.
• Wider Range of Protection.
The Intellectual Property Law of Cyprus applies to a wider range of income than that of other IP Box regimes as most focus exclusively on income derived from patents and offer less exemptions on capital gains on the disposal of IP assets.
• International Compliance.
Cyprus is fully compliant with international tax policies, derived and mandated from EU, OECD and WIPO and has signed several treaties establishing effective tax policies that afford maximum IP protection and efficiency solutions.
• An IT Hub.
Cyprus is becoming a hub for IT services and the community of businesses in this industry are reshaping cities on the island. As a result, more policies and initiatives are put in place to protect and assist the development of the IT industry.
Our firm will assist and guide you to take advantage of our domestic favorable Intellectual Property Law, and we will ensure that you get full protection of your valuable IP assets and also the maximum financial benefits for your company through the establishment and management of an IP Holding and Development Company in Cyprus. Contact us for more info.
Registration
We register Trademarks both in the Republic of Cyprus and also in International level. We insist that our clients must protect their trademarks, brand names, logos and images.
We are Members of the International Trademark Association (INTA), and we offer a fully combined IP service, providing advice and professional support in relation to copyright, trade marks, patents, designs, as well as unfair competition and protection of other confidential information. Our services are wide and includes the drafting of various IP agreements, such as licensing and software development.
We are dealing with matters relating to all stages of a trade mark registration, such as filing, registration, opposition, cancellation, invalidity, conversion, assignment, renewal, on a national as well as EU and international (WIPO) level, registration of national patents and validation of European patents in Cyprus, renewals of patents, copyright actions, counterfeit actions.