Cyprus Tax Incentives for Income from Intellectual Property

Dr. Trudy Marie Attard | Published on 10 May 2016


The May 2012 Cyprus tax incentives implemented by the Cypriot Parliament to attract business and investment to the country introduce two considerable incentives for income from intellectual property, namely:

1. A tax exemption of 80% of the profit realised upon the disposal or use of intellectual property rights held by Cyprus companies. The 80% exemption is applied to the net profit after deducting all direct expenses and amortisation;

2. The amortisation of the cost incurred to acquire the intellectual property in equal sums over five years.

These incentives are especially attractive for Cyprus royalty structures.

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