FOR SOFTWARE, SAAS & R&D-LED BUSINESSES

Build and operate your IP company in Cyprus

We help founders, technology businesses and international groups use Cyprus for IP ownership, development and commercialisation—from choosing the structure and implementing it to the annual calculations, accounting and reporting.

80%deduction that may apply to qualifying IP profit

3%potential effective tax rate on qualifying IP profit

15%Cyprus corporation tax rate from the 2026 tax year

STRUCTURES WE HELP PUT IN PLACE

A Cyprus structure built around how the technology earns

Whether you are launching a product, bringing an existing business to Cyprus or reorganising a group, we help select and implement a workable role for the Cyprus company.

Our work can bring together corporate structuring, company incorporation, financial modelling, specialist legal or valuation input and the accounting framework needed after launch.

01

Software and SaaS operating company

A Cyprus company develops or owns its product, contracts with customers and earns subscription, licence or embedded technology income.

02

IP owner within an international group

The Cyprus company owns and manages qualifying IP and licenses it to operating companies under a commercially supportable group model.

03

Cyprus development and R&D company

A Cyprus team develops and improves technology for the business, with the ownership, funding and development arrangements documented from the outset.

04

Existing-IP transfer or acquisition

An existing asset is acquired, transferred or reorganised with the necessary valuation, legal, tax and accounting work coordinated before implementation.

WHAT THE REGIME CAN COVER

Qualifying R&D-created IP and the income it generates

The regime focuses on qualifying intangible assets created through research and development. The asset and the related income are considered together.

Qualifying assets

  • Computer software and technology products
  • Patents
  • Certain other legally protected, R&D-created intangible assets
  • Assets for which the Cyprus business has qualifying economic ownership

Relevant income

  • Royalties and licence fees
  • Qualifying income embedded in products or services
  • Compensation or insurance proceeds linked to the asset
  • Relevant income from the disposal of qualifying IP, subject to its statutory treatment

Outside this calculation: trademarks, brands, image rights and other marketing-related IP do not qualify for the nexus benefit. A business may still own and use them, but they are treated separately.

HOW THE BENEFIT IS CALCULATED

The nexus calculation connects profit to development activity

The regime does not apply a preferred rate to all company revenue. It identifies the qualifying profit connected with qualifying IP and the R&D expenditure that produced it.

( QE + UE )÷OE×OI

Qualifying profit → 80% deduction → effective rate as low as 3%

The 3% outcome is possible where the statutory conditions are met and applies only to qualifying profit calculated under the nexus approach.

OIOverall income from the qualifying asset, after directly related costs.

QEQualifying R&D expenditure directly connected with developing the asset.

UEThe statutory uplift, subject to the limits provided by the regime.

OEOverall expenditure, including relevant acquisition and related-party R&D costs.

Development performed by the business or outsourced to unrelated developers is treated differently from acquisition expenditure and R&D outsourced to related parties. We model the effect before implementation and maintain the calculation as the business evolves.

FROM SET-UP TO ANNUAL REPORTING

One coordinated Cyprus workstream

We can lead the financial and tax implementation while coordinating the company’s legal, valuation and overseas advisers. The result is a structure that can be operated—not simply documented at the beginning.

01DesignChoose the ownership, development, licensing and funding model.

02ImplementCoordinate incorporation, agreements, specialist advice and the opening financial model.

03OperateTrack development costs, income streams, asset history and supporting records.

04ReportPrepare the annual nexus computation, tax work, financial statements and audit support.

Explore our Cyprus tax advisory, accounting, audit and compliance support, and corporate structuring services.

WHAT WE MAINTAIN

The annual record behind the IP calculation

Our ongoing work keeps the tax result connected with the way the company develops and earns from its IP.

IP asset and ownership record

Creation or acquisition history, agreements, ownership changes and relevant valuations.

Development expenditure record

Employee, contractor and related-party costs mapped to the relevant qualifying asset.

Income analysis

Qualifying IP income identified separately from implementation, support or other service revenue.

Annual nexus schedule

The calculation updated for the year and aligned with the company’s accounts and tax return.

PRACTICAL QUESTIONS

Starting points for an IP-led business

Can an existing IP asset be moved to Cyprus?

Potentially. We assess the ownership history and intended commercial model, then coordinate the valuation, legal, tax and accounting work needed for the chosen route.

Can overseas developers form part of the model?

Yes. The treatment depends in part on whether the developer is related or unrelated and which entity incurs the expenditure. We build those facts into the nexus model.

Does all SaaS revenue qualify?

Not automatically. Licence, subscription and embedded technology income may contain a qualifying element, while implementation, support or consulting income may require separate treatment.

Can you work with our existing advisers?

Yes. We can lead the Cyprus financial, tax and reporting workstream and coordinate with the company’s lawyers, valuation specialists and overseas tax advisers.

START THE CONVERSATION

Structure the IP company around the way the business earns

Tell us whether you are launching, relocating or reorganising an IP-led business. We can outline a practical Cyprus structure, the specialist input required and the ongoing accounting and tax work needed to operate it.