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What would the IP Box regime save my company?

Updated 2026Correct as at 1 January 2026

Tax with and without the IP Box on qualifying intellectual property income, at your nexus ratio.

Required reading

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.

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 - 80% exemption on the 15% corporate rate.

IP Box

Tax with and without the IP Box regime

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.

60,000
saved a year, compared with paying the full corporate rate
Tax without IP Box (15%)€75,000
Tax with IP Box (80% of the qualifying portion exempt)€15,000
Effective rate3.0%
3.0% effective rate

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 →