What would the IP Box regime save my company?
Tax with and without the IP Box on qualifying intellectual property profit, at your nexus ratio.
Before you rely on the figure
Trademarks and brand assets do not qualify. Only patents, copyrighted software and functionally similar IP.
The nexus ratio reflects how much of the research and development was actually done by the company. Buying IP in from a related party collapses the benefit.
Profit, not income. The exemption applies to qualifying profit: the income from the IP less the costs of earning it.
A tax ruling from the Cyprus Tax Department is normally obtained before relying on the regime. The effective rate is approximately 3% at full nexus: the 80% exemption on the 15% corporate rate.
Tax with and without the IP Box regime
Profit after the costs of earning the IP income, not the gross income itself.
The nexus ratio is, roughly, the share of the research and development behind the IP that your company did itself (or paid unrelated parties to do). Buying IP in from a related party collapses the benefit.
Approximately 3% at full nexus: the 80% exemption applied to the 15% corporate rate. The rate depends on the nexus calculation and is not automatic; a tax ruling from the Cyprus Tax Department is normally obtained before relying on the regime.
This tool gives an estimate, not advice. It uses the 2026 rates and rules as we understand them at the date shown; your own position depends on facts a calculator cannot see, and is confirmed on a call. All tools →