Quick Answer
The Cyprus IP Box gives an effective corporate tax rate of 3% on qualifying IP profits. Companies deduct 80% of qualifying income before applying the standard 15% corporate rate. The regime uses the OECD modified nexus approach - the deduction scales with the ratio of qualifying R&D expenditure to total R&D. Qualifying assets include patents and software copyrights developed through company R&D activity.
Cyprus IP Box Calculator 2026
Calculate your effective tax rate under the Cyprus IP Box regime. Qualifying IP profits benefit from an 80% deduction, reducing the effective corporate rate to 3%.
IP Income Details
IP Box Tax Calculation
Effective rate on IP income
3.0%
vs standard 15%
Save €24,000/yr
After amortizing setup cost (€1,000/yr): net saving €23,000/yr
Cyprus vs Other IP Box Regimes
Estimates based on 2026 Cyprus IP Box legislation (Article 9B, Income Tax Law). The nexus ratio is defined as qualifying R&D expenditure / total R&D expenditure. Consult a Cyprus tax advisor for ruling applications and exact nexus calculations. Speak to a specialist.
The Cyprus IP Box (Intellectual Property Box) regime, governed by Article 9B of the Income Tax Law, allows companies to deduct 80% of qualifying IP profits from taxable income. With a standard corporate rate of 15%, this results in an effective rate of 3% on qualifying income. The regime uses the OECD-compliant modified nexus approach, meaning the deduction scales with the proportion of qualifying R&D expenditure versus total R&D expenditure (the nexus ratio). Qualifying IP includes patents, software copyrights, and certain other intangible assets with patent or equivalent protection.
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