Cyprus Tax Incentives for Income from Intellectual Property

Dr. Trudy Marie Attard | Published on 10 May 2016

company-formation

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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