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.

IP profit and eligibility

Annual qualifying IP profit before tax Profit attributable to qualifying IP after normal business expenses, before corporate tax.

Modified nexus eligibility (%) Use 100% only if all qualifying IP profit passes the nexus calculation.

Substance and compliance costs

Standard company annual running cost

Baseline accounting, audit and company maintenance cost without IP Box complexity.

IP Box annual running cost

Office, R&D tracking, specialist accounting, documentation and ongoing advisory costs.

One-off setup or ruling cost

Optional upfront legal/tax ruling or restructuring cost.

Years to spread setup cost

Used only for the reality-check break-even estimate.

Planning assumptions

Cyprus corporate tax rate (%)

IP Box deduction rate (%)

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

Standard company tax

15% on IP profit

Gross tax saving

Net annual benefit

After extra cost estimate

Calculation breakdown

Professional planning notes

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.