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Cyprus ideal Intellectual Property location

Intellectual Property (IP) can be one of the most valuable assets of an organisation. Choosing the right location for the centralisation and management of IP is a very important strategic business decision. The ideal location to establish an IP structure is one that can serve the organisation's business strategies/model, safeguard and protect its IP and contribute to its tax optimisation.
Cyprus offers an efficient IP tax regime coupled with the protection afforded by EU Member States and by the signatories of all major IP treaties and protocols.

The Cyprus IP tax regime

The IP tax regime covers a wide range of intangibles including:

  1. Copyrights, which may take any of the following forms: literary works, dramatic works, musical works, scientific works, artistic works, sound recordings, films, broadcasts, published editions, databases, publications, software programs
  2. Patented inventions
  3. Trademarks (and service marks), designs and models that are used or applied on product

The above is a non-exhaustive list.

Registrable IPs need not be registered in Cyprus to benefit from IP regime.

Tax benefits of Cypriot IP companies

The new provisions provide exemptions from tax of income related to IP. More specifically:

  1. 80% of worldwide royalty income generated from IP owned by Cypriot resident companies (net of any direct expenses) is exempt from income tax
  2. 80% of profit generated from the disposal of IP owned by Cypriot resident companies (net of any direct expenses*) is exempt from income tax
  3. any expenditure of a capital nature for the acquisition or development of IP is claimed as a tax deduction in the year in which it was incurred and the immediate four following years on a straight-line
  4. All the above exemptions are also available for IPs acquired or developed before January 2012


The expected annual tax for the Cyprus IP Company will be as follows:

Annual royalty income


Direct expenses (say)


Net income


80% deemed deduction


Taxable income


@12.50% Income tax


Effective tax rate


Under the majority of Cyprus double tax treaties the withholding tax on royalty payments is 0%.

The EU Directives and Regulations relating to IP protection apply and have been introduced into Cyprus domestic legislation.

With a single IP registration process in Cyprus, IP rights owned by Cyprus companies may enjoy full protection in all EU Member States.

How can M.P Multi-Count Services Limited help you

  1. Cyprus IP holding structures
  2. Corporate statutory compliance matters
  3. Existing IP - tax efficient transfer to Cyprus IP company
  4. Ongoing support after initial set-up

Cyprus is signatory to the following international conventions relevant to IP

  1. European Community Trademarks
  2. Convention Establishing the World Intellectual Property Organisation (WIPO)
  3. WIPO
  4. The Madrid Agreement Concerning the International Registration of Marks (the Madrid Agreement) and Protocol to the Madrid Agreement
  5. The Patent Cooperation Treaty
  6. Berne Convention for the Protection of Literary and Artistic Works
  7. Paris Convention for the Protection of Industrial Property
  8. Convention for the Protection of Producers of Phonograms Against Unauthorised Duplication of Their Phonograms
  9. WIPO Performance and Phonograms Treaty
  10. Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations
  11. Trademark Law Treaty
  12. WIPO Beijing Treaty on Audiovisual Performances


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M.P Multicount Services Limited

40-42 Vyzantiou Street, 3rd Floor, Office 301

2064 Strovolos, Nicosia, Cyprus

P.O Box 25582, 1310 Nicosia

Tel:+(357) 22-105300 Mob:+(357) 99 220585

Fax:+(357) 22 105600

Email:- info@multi-count.com