See how much tax your business could save by holding its intellectual property in Cyprus — in under 2 minutes.
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Enter Your Numbers
Adjust the fields to match your situation
📅 All figures below should be for one tax year
The total annual income your intellectual property generates — this includes royalties, licence fees, income from software sales, or any revenue directly tied to your IP.
€
Not sure? Use your best estimate. This is typically found on your income statement under licensing revenue, royalty income, or software subscription revenue.
Your total annual costs to create or maintain the IP — including salaries for developers, outsourced R&D, and any acquisition costs. Think of it as: "What does it cost to build and maintain the thing that earns the income above?"
€
Include everything: your team's salaries, contractors, outsourced development, server costs for R&D, and any cost to acquire the IP if you purchased it.
Of the total costs above, how much was spent on R&D done in-house by your own team plus any R&D outsourced to unrelated third parties (e.g. freelancers, independent contractors, external agencies)? Both count here. This is the key driver of your tax benefit — the higher this number, the bigger your saving.
€
Include both your in-house R&D costs (salaries, equipment) and any R&D outsourced to unrelated third parties. Exclude costs paid to related/group companies and any amount paid to acquire existing IP. This should be ≤ your total costs above.
Cyprus's corporate tax rate from 2026 onwards.
15% — Cyprus corporate tax rate
Select your current jurisdiction to see how much you'd save by moving your IP to Cyprus.
What qualifies? Patents, copyrighted software, utility models, and other OECD-recognised intangible assets. Trademarks and brand names generally do not qualify.
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Your Estimated Savings
Results update as you type
Based on your numbers, your effective tax rate on qualifying IP income would drop from 15% to just 2.50%. That means instead of paying €90,000 in tax, you'd pay only €15,000 — keeping an extra €75,000 in your business every year.
Your Nexus Fraction100%
This measures how much R&D you do yourself. Higher = bigger tax benefit.
0%100%
Your Effective Tax Rate with IP Box
2.50%
vs. 15% standard Cyprus rate
Annual Tax You Save (vs Standard 15%)
€75,000
Money that stays in your business
Annual Savings vs UK (25%)
€135,000
Compared to your current jurisdiction
How we calculated this
Your IP income minus costs = qualifying profit. Then 80% of that (adjusted by your nexus fraction) is exempt from tax.
Qualifying Profit
€600,000
Income − Costs
Tax-Exempt Portion
€480,000
80% × Nexus × Profit
Taxable Amount
€120,000
What you actually pay tax on
Tax Payable
€18,000
15% of taxable amount
Tax Rate Comparison
Cyprus IP Box
2.5%
Cyprus Std.
15%
UK
25%
Like what you see? Let's explore whether the IP Box is right for your business — no obligation, no jargon.
