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areas of law, we provide trusted legal solutions for individuals, families, and businesses
If your business earns money from software, patents, or other qualifying IP, the Cyprus IP Box regime can bring your tax rate on that income down to roughly 3%. Naklaw sets it up properly, so the savings are real and hold up if the Tax Department ever asks how you got there.
A Tax Break That Actually Rewards Building Things
Naklaw is a Cyprus law firm that has helped international businesses structure their tax position properly since 2003. The Cyprus IP Box regime is one of the most effective tools we work with, part of our wider Tax & International Structuring practice, and it’s specifically designed for companies that create real intellectual property, not just companies that want a lower tax bill.
Here’s the short version: 80% of the profit your qualifying IP earns is deducted before tax. Run the remaining 20% through Cyprus’s 15% corporate tax rate, and you land on an effective rate of about 3%. It’s one of the lowest IP box tax rates anywhere in the EU, and unlike some countries’ patent boxes, Cyprus’s version explicitly covers copyrighted software too, not just patents.
HOW IT ACTUALLY WORKS
What Qualifies, In Plain Terms
Patents, copyrighted software, and similar assets. Trademarks and marketing IP don't qualify.
That depends on the nexus ratio, how much of the R&D genuinely happened in Cyprus, not bought in from elsewhere.
About 3% on qualifying profit, based on the current 15% corporate rate and an 80% deduction.
WHAT WE COVER
Everything You Need to Use the Cyprus IP Box Regime Properly
Getting the Cyprus IP Box regime right isn’t just one form; it’s a handful of connected pieces that must work together. Here’s what we help clients with, from the entity that holds the IP to what happens when it’s eventually sold.
We design the Cyprus entity that will actually hold your IP, built to qualify for IP Box treatment from the outset, not adjusted afterward.
Not every asset qualifies. We assess your patents, software, and other IP rights so you know exactly what's eligible before you build a strategy around it.
We combine IP Box treatment with your wider corporate tax position, so it works alongside everything else, not as a standalone perk.
Software companies, R&D-heavy teams, and tech founders get a structure built around how they actually create value.
If your IP is developed, licensed, or used in more than one country, we make sure the tax treatment holds up in every jurisdiction involved, not just Cyprus.
Moving IP into or out of a Cyprus structure has to be documented correctly to keep its tax treatment intact. We handle that transfer properly.
Tap the Scenario That Matches You
Copyrighted software is one of the clearest qualifying assets under the Cyprus IP Box regime. We'll check your nexus ratio and set up the structure.
CTA → Explore IP Holding StructuresWe'll assess exactly which of your IP assets are eligible before you build a strategy around the wrong ones.
CTA → Check Your Qualifying IPWe make sure the Cyprus IP Box treatment holds up everywhere your IP actually operates.
CTA → Explore Cross-Border IP PlanningThat's a completely normal starting point. We'll walk through your IP and tell you honestly what applies.
CTA → Book a Free ConsultationAn 80% deduction on qualifying profit brings your effective rate down to around 3%, well below most comparable regimes.
Unlike many patent box regimes elsewhere, Cyprus's rules clearly cover copyrighted software, not just patents.
Built on the OECD's modified nexus approach under BEPS Action 5, so the benefit is durable, not a loophole that closes overnight.
When a qualifying IP asset is sold as a capital transaction, that gain can also benefit from the same deduction, subject to the nexus fraction.
How We Get You Set Up
So we know exactly what qualifies and what your nexus ratio actually looks like.
We set up the right Cyprus entity, or fit the IP Box into a structure you already have.
So the deduction is filed correctly and holds up if it's ever reviewed.
Why Businesses Trust Naklaw With Their IP Tax Position
Reviews From Real Clients
ENGLISH
| Name | Country | Rating | Review |
|---|---|---|---|
| Daniel F. | United Kingdom | 5/5 | Naklaw walked us through the nexus rules clearly and got our software IP qualifying properly. |
| Laura B. | United States | 5/5 | Straightforward explanation of a genuinely complicated regime. Our effective rate dropped exactly as promised. |
| Name | Country | Rating | Review |
|---|---|---|---|
| Christian W. | Deutschland | 5/5 | Sehr kompetent bei der Einordnung unserer Patente. Der Prozess war von Anfang an transparent. |
| Name | Country | Rating | Review |
|---|---|---|---|
| Daniel F. | United Kingdom | 5/5 | Naklaw walked us through the nexus rules clearly and got our software IP qualifying properly. |
| Laura B. | United States | 5/5 | Straightforward explanation of a genuinely complicated regime. Our effective rate dropped exactly as promised. |
| Name | Country | Rating | Review |
|---|---|---|---|
| Christian W. | Deutschland | 5/5 | Sehr kompetent bei der Einordnung unserer Patente. Der Prozess war von Anfang an transparent. |
| Nadine F. | Schweiz | 5/5 | Endlich jemand, der die Nexus-Regeln wirklich verständlich erklärt hat. Klare Empfehlung. |
| Name | Country | Rating | Review |
|---|---|---|---|
| Вадим С. | Россия | 5/5 | Объяснили всё простым языком. Наш программный продукт теперь полностью подходит под режим. |
| Мария К. | Кипр | 5/5 | Очень довольны работой с Naklaw. Сэкономили больше, чем ожидали. |
| Name | Country | Rating | Review |
|---|---|---|---|
| איתן ר. | ישראל | 5/5 | הסבירו לנו בדיוק את כל התנאים ובנו מבנה שעובד מצוין. |
| שירה א. | ישראל | 5/5 | צוות מקצועות עם ידע אמיתי על מס הקניין הרוחני. |
Cyprus IP Box Regime, Frequently Asked Questions
Around 3%. An 80% deduction on qualifying IP profit means only 20% is taxed, at the current 15% corporate rate.
Patents, copyrighted software, and similar assets developed through genuine R&D qualify. Trademarks and marketing-related IP don't.
It's the OECD rule that ties your deduction to how much R&D genuinely happened in Cyprus. Buy IP in from a related party with no real development, and the benefit shrinks.
Yes, explicitly. Copyrighted software is one of the clearest qualifying assets, which is part of why it's popular with SaaS and tech businesses.
If the disposal is treated as a capital transaction, the gain can also receive the 80% deduction, subject to your nexus fraction at the time.
You claim it through your annual corporate tax return, with a supporting nexus calculation. Proper documentation of your R&D expenditure is essential.
Yes, it can work alongside other reliefs such as the Notional Interest Deduction, depending on how you structure your overall setup.
It can, particularly if future R&D happens in Cyprus and rebuilds your nexus ratio over time. We'll assess whether it's worthwhile for your situation.
The Cyprus IP Box regime rewards businesses that actually build things. If that's you, let's make sure your structure is set up properly, and that roughly 3% rate is one you can rely on for years, not just this year.
BOOK YOUR IP BOX CONSULTATION+357 25-352-352 · info@naklaw.com · Limassol, Cyprus
We are a dedicated team of experienced lawyers committed to protecting your rights and delivering justice. With years of expertise in diverse areas of law, we provide trusted legal solutions for individuals, families, and businesses.We are a dedicated team of experienced lawyers committed to protecting your rights and delivering justice. With years of expertise in diverse areas of law, we provide trusted legal solutions for individuals, families, and businesses.We are a dedicated team of experienced lawyers committed to protecting your rights and delivering justice. With years of expertise in diverse areas of law, we provide trusted legal solutions for individuals, families, and businesses.
Established in 2003 by our Managing Partner, Mr. Nasos A. Kyriakides, Nasos A. Kyriakides & Partners LLC has become one of the leading law firms in Cyprus, setting high standards of excellence in the legal profession.
Over the past 23 years, our combination of professional expertise, extensive experience, and the continued trust and support of our loyal long-standing clients has enabled the firm to grow significantly in both reputation and size.
Our commitment to delivering exceptional legal and corporate services, together with our client-focused approach and deep industry knowledge, has positioned us among the leading law firms in Cyprus. This recognition is reflected in the prestigious awards we have received, including:
CorporateINTL Global Awards 2014 – Oil & Gas Law Firm of the Year in Cyprus
CorporateINTL Global Awards 2015 – Banking & Finance Law Firm of the Year in Cyprus
In addition, our firm is proud to be a member of The Legal 500, one of the world’s leading legal directories, further reflecting our commitment to excellence and the high standards of service we provide.
Chief Executive Officer (CEO)
Following the accession of Cyprus in the EU in 2004 and the abolition of the "offshore regime", Cyprus has maintained a simplified and effective tax system in full compliance with the EU and the OECD.
As a result of the above Cyprus has become a stable EU, "non-offshore" low tax jurisdiction with a beneficial tax regime for foreign businesses and individuals as well as a safe professional business environment.
Cyprus has one of the lowest-taxation rates within the EU, with a flat tax rate at 15% on profit. Cyprus offers additionally to its tax benefits, great advantages as a respectful and useful jurisdiction for holding companies.
It is important to indicate that the business climate in Cyprus is based on a free and open economy, offering first-class legal and financial expertise. It's very easy to fly in and out of Cyprus throughout the year.
When I faced unfair treatment at work, this incredible team stood by my side, fought tirelessly for my rights, and ensured that I finally received the justice I truly deserved
We take pride in delivering justice with integrity, dedication, and trusted legal expertise. Our clients’ voices reflect the true strength of our firm
We work with individuals, families, startups, and large corporations across various legal matters.
Yes, we provide a free 30-minute consultation to understand your case before moving forward.
Our fees are transparent and flexible — you can choose between hourly rates, flat fees, or monthly packages.
Yes, our team also assists with immigration & international legal matters.
You can easily schedule an appointment through our website or by contacting our office directly.
Our personalized approach, proven track record, and dedicated team of attorneys set us apart.
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+357 25-352-352
info@naklaw.com
Anexartisias & Athinon, Nora Court, 2nd Floor, Office 201-202, 3040 Limassol, Cyprus
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