2026 Cyprus IP Box planning

Cyprus IP Box Regime Calculator

Estimate the tax benefit of the Cyprus IP Box regime using the 2026 corporate tax rate, the 80% qualifying IP deduction, modified nexus ratio and a realistic substance cost check.

3% headline effective rate80% deduction means only 20% of qualifying IP profit is taxed at 15% CIT.
Nexus ratio awareAdjusts for how much of your IP profit is eligible under the modified nexus approach.
Substance reality checkCompares tax savings with estimated office, R&D, audit and ruling costs.
Software and patentsDesigned for SaaS, software, patent and qualifying technical IP businesses.

Model your IP Box benefit

Use annual net IP profit before Cyprus corporate tax. For a serious filing position, your adviser will need a nexus calculation and supporting R&D documentation.

1

IP profit and eligibility

Profit attributable to qualifying IP after normal business expenses, before corporate tax.
Use 100% only if all qualifying IP profit passes the nexus calculation.
2

Substance and compliance costs

Baseline accounting, audit and company maintenance cost without IP Box complexity.
Office, R&D tracking, specialist accounting, documentation and ongoing advisory costs.
Optional upfront legal/tax ruling or restructuring cost.
Used only for the reality-check break-even estimate.
3

Planning assumptions

Important: This calculator assumes the IP itself is qualifying. Trademarks and purely marketing-related IP generally do not qualify. The nexus ratio can materially reduce the benefit.

Your IP Box estimate

IP Box tax
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Standard company tax
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15% on IP profit
Gross tax saving
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Net annual benefit
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After extra cost estimate

Calculation breakdown

Professional planning notes

Related business tax guides

Read these before using the IP Box estimate for company structuring decisions.

Starting a business in CyprusBusiness setup and operating context for expats.Cyprus tax for expatsTax residency and company-owner planning basics.Business Owner Income CalculatorEstimate salary, dividends and owner take-home income.Company Setup Cost CalculatorBudget first-year company setup and compliance costs.

2026 Cyprus IP Box assumptions

80% deductionCyprus IP Box allows a notional deduction of up to 80% of qualifying profits from qualifying IP.
15% CIT from 2026Only 20% of fully qualifying IP profit is taxed at the 2026 corporate tax rate, producing a 3% headline effective rate.
Modified nexus approachThe benefit depends on qualifying R&D activity and documentation. The calculator lets you reduce the eligible share.

This is a planning tool, not tax advice. Qualification depends on the IP asset, ownership, development activity, R&D records, transfer pricing, contracts, substance and Cyprus Tax Department practice.

Disclaimer

This calculator is for planning and illustration purposes only. Results are estimates and do not constitute tax, legal, immigration, investment, pension, or financial advice. Tax treatment, contribution rates, treaty provisions, and eligibility conditions vary based on individual circumstances, source country, domicile status, residency timing, and applicable double tax treaties. Confirm important decisions with a qualified Cyprus tax adviser, regulated financial adviser, or the relevant authority (Cyprus Tax Department, Social Insurance Services, GESY, or Migration Department) before acting.

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