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Cyprus is a tax-efficient EU Intellectual Property location. It offers full international protection for IP assets and significant financial benefits.

Choosing the right location for the centralization and management of IP is a very important strategic business decision. Cyprus could be the ideal location to safeguard and protect an organisation’s IP and contribute to its tax optimization. Cyprus IP legislation is applied in line with the OECD's guidance and reviewed and assessed according to the EU Code of Conduct.

Cyprus Intellectual Property (IP) Regime - Main Benefits

Cyprus IP Box Regime protects the IP but also economic-tax benefits.

Tax benefits of Cyprus IP companies

80% of worldwide royalty income generated from IP owned by Cypriot resident companies (net of any direct expenses*) is exempt from income tax.
80% of profit generated from the disposal of IP owned by Cypriot resident companies (net of any direct expenses*) is exempt from income tax.
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
All the above exemptions are also available for IPs acquired or developed before January 2012.

Cyprus’ wide double tax treaty network and access to the EU Interest and Royalty Directive serve as additional means for the group to achieve tax optimization when it comes to IP exploitation through Cyprus.

Other Benefits of Cyprus IP Companies

Resting on a sound legal system based on Common Law principles and being a signatory to International Conventions on the Protection of Intellectual Property, Cyprus’s IP tax regime is considered the most favourable in Europe, affording the maximum protection, stability, and assurance for IP owners.

The IP regime has been reviewed by the EU Code of Conduct and has been assessed as fully compatible with EU standards

Reasons to Protect Your Organisations Intellectual Property (IP)

Protecting your IP is a must in the digital age. It is the only legal way to avoid having your unique ideas, products, or services copied or used without permission.

Intellectual Property (“IP”) can be one of the most valuable assets of an organization, which may be sold or used for other commercial purposes for a fee.
By granting a patent, you acquire exclusive rights to use and exploit your invention.

A patent is granted by the Intellectual Property Section https://www.intellectualproperty.gov.cy/en/

Qualified IP Assets

Eligible IP assets shall include a wide range of intangibles including: Copyrights, Patented inventions, Trademarks.

How P. Kalopetrides & Co. can assist you?

Cyprus IP holding structures and initial set-up
Corporate statutory compliance matters
Existing IP – tax efficient transfer to Cyprus IP company
Eligibility of tax depreciation
IP-related substance
Ongoing corproate and statutory complianace matters.

P.Kalopetrides & Co.

Contact us to find out how to protect your assets.

Book a preliminary teleconference consultancy meeting.

Contact us by email: This email address is being protected from spambots. You need JavaScript enabled to view it. or Tel: +357 22 669017

TAX BANNER 02

	31/01	31/03	30/04	31/05	30/06	31/07	01/08	31/08	31/12
Submission of declaration of deemed dividend distribution (TD 623) for the profits of 2020 and payment of SDC and NHS.
Electronic submission of the income tax return for tax year 2021 for companies (TD 4)
Electronic submission of income tax return of physical persons preparing audited financial statements for 2021 (TD 1).
Payment of premium tax for life insurance companies 1st, 2nd & 3rd instalment for 2023 (TD 199).
Electronic submission of the 2022 employer’s return (TD 7)
Payment of Special Defence Contribution (SDC) & NHS (if payment is made to Cyprus tax resident individual) of 2023 (semester) on rents if such tax is not withheld at source by tenant and on dividends or interest from sources outside Cyprus (TD 604, 612, 613).
Payment of Annual Levy €350 by Companies to the Registrar of Companies for 2023.
Electronic submission of 2022 personal tax returns of individuals (employees and pensioners) and payment of income tax liability through tax portal (codes 200 & 2013).
Submission of the 2023 provisional tax return and payment of first and second installments of tax through tax portal (code 300).
Payment of 2022 final tax balance under the self - assessment method by companies and payment of personal income tax under the self-assessment method by individuals preparing audited financial statements through tax portal (code 300).
Payment of tax deducted from employees salary (PAYE) TD 61.		By the end of each month for the previous month.
Payment of employee social security contributions and National Health System (NHS).
Payment of tax withheld in the preceding month on payments to non-Cyprus residents.

Notes:
1. Tax Returns can only be submitted electronically.
2. Tax payments can only be made electronically.
3. Revised tax returns can be submitted from tax year 2018 onwards, within 3 years from the submission deadline.

4. An administrative penalty of €100 or €200 (depending on the specific case), is imposed for late submission of a tax return.

Interest & Penalties according to circumstances
as from 01/01/2020 - 31/12/2022      1,75%
as from 01/01/2019 - 31/12/2019      2%
as from 01/01/2017 - 31/12/2018 3,5%
as from 01/01/2015 - 31/12/2016      4%
as from 01/01/2014 - 31/12/2014      4,5%
up to 31/12/2006 4,75 - 9%

As from July 2017, Cyprus Income Tax Law (Ν.119 (Ι)2017) has been amended and became effective as from 1 January 2017, allowing to an individual to acquire Cyprus tax residency by staying only 60 days in Cyprus, under certain conditions, . An individual who meets all the conditions listed below with respect to a given tax year will be deemed tax-resident in Cyprus.

The preconditions

All of the following criteria must be met by an applicant:

He/she remains in Cyprus for at least 60 days for one or more periods during the tax (calendar) year; and
He/she carries out any business in Cyprus; and/or works in Cyprus and/or holds an office in a company which is tax resident in Cyprus during the tax year; and
He/she maintains a permanent residence in Cyprus (owned or rented); and
He/she do not reside in any other single state for a period exceeding 183 days, and
He/she is not tax resident in any other state.

A person who satisfies these criteria can receive a tax residence certificate by submitting written application and supporting evidence documentation.

Main benefits for an individual that chooses to become Cyprus tax resident

Individuals who are Cyprus tax residents, whether under the “60 day rule” or under the “183 day rule” are taxed in Cyprus on their worldwide income, however certain exceptions apply, as follows:

A Cyprus tax resident individual but non-domiciled in Cyprus is exempt in Cyprus from taxation on his/her worldwide dividend and ‘passive’ interest income (eg interest and rental income). Read more in our website ‘Cyprus Non-Domiciled Tax Status’.
Profit from the sale of securities is exempt from tax in Cyprus. ‘Securities’ include, inter alia, shares in local or foreign companies, bonds, debentures, options etc, except in cases where the value of the shares derives from the value of immovable property in Cyprus.
An individual who is going to be employed in Cyprus and his/her income will exceed €100.000, and, provided that he/she has not been a tax resident of Cyprus prior to the commencement of his/her employment in Cyprus, he/she will enjoy 50% discount on his/her income tax in Cyprus, for a period of 10 years.
Income from employment carried out outside Cyprus is exempted from Cyprus income tax, provided that the employment exercised outside Cyprus exceeds 90 days per tax year.

Calculation of the days of residency in Cyprus

The day of departure from Cyprus is considered as a day outside of Cyprus;
The day of arrival in Cyprus is considered as a day in Cyprus;
Arrival in Cyprus and departure from Cyprus within the same day is considered as one day in Cyprus;
Departure from Cyprus and return to Cyprus within the same day is considered as one day outside of Cyprus.

TAX BANNER 02

	31/01	31/03	30/04	31/05	30/06	31/07	01/08	31/08	31/12
Υποβολή δήλωσης λογιζόμενης διανομής μερίσματος ΤΦ 623 για το έτος 2020 και πληρωμή ΕΑΕ & ΓΕΣΥ.
Ηλεκτρονική υποβολή δήλωσης εισοδήματος 2021 από εταιρείες (ΤΦ 4).
Ηλεκτρονική υποβολή δήλωσης εισοδήματος 2021 από φυσικά πρόσωπα τα οποία ετοιμάζουν ελεγμένες οικονομικές καταστάσεις (ΤΦ 1).
Πληρωμή 1ης, 2ης & 3ης δόσης φόρου 2023 σε ασφάλιστρα ασφαλιστικών εταιρειών, κλάδου ζωής (ΤΦ 199).
Ηλεκτρονική υποβολή δήλωσης εργοδότη για το 2022 (ΤΦ 7).
Πληρωμή έκτακτης αμυντικής εισφοράς (ΕΑΕ) και ΓΕΣΥ 2023 (εξάμηνο) σε ενοίκια, αν δεν έγινε παρακράτηση από ενοικιαστή και σε μερίσματα & τόκους από εξωτερικό (ΤΦ 604, 612, 613).
Ετήσιο Τέλος Eταιρείας €350 πληρωτέο στον Έφορο Εταιρειών για το 2023.
Ηλεκτρονική υποβολή φορολογικής δήλωσης 2022 και πληρωμής με αυτό-φορολογία από μισθωτούς και συνταξιούχους που το εισόδημα δεν προέρχεται από επιχειρηματική δραστηριότητα (ΤΦ 1).
Υποβολή προσωρινής φορολογίας 2023 και πληρωμή 1ης & 2ης δόσης, μέσω πύλης (κωδικοί 200 & 213)
Πληρωμή τελικού οφειλόμενου φόρου για το 2022 για εταιρείες με αυτό-φορολογία και για φυσικά πρόσωπα που ετοιμάζουν ελεγμένες οικονομικές καταστάσεις με αυτό-φορολογία, πληρωμή μέσω πύλης (κωδικός 300)
Πληρωμή φόρου που αποκόπηκε από τον μισθό και τα φιλοδωρήματα υπαλλήλων (PAYE) ΤΦ 61.		Τέλος κάθε μήνα για τον προηγούμενο μήνα.
Καταβολή εισφορών κοινωνικών ασφαλίσεων εργαζομένων και ΓΕΣΥ.
Πληρωμή έκτακτης αμυντικής εισφοράς (ΕΑΕ) και ΓΕΣΥ (εάν η πληρωμή γίνεται σε φυσικό πρόσωπο) που παρακρατείται σε μερίσματα τόκους, ενοίκια, όταν ο ενοικιαστής είναι εταιρεία ή συνε Πληρωμή παρακρατήσεων σε εισοδήματα στη Δημοκρατία σε μη-Κύπριους κάτοικους (ΤΦ 11).

Σημειώσεις:
1. Η υποβολή δηλώσεων γίνεται μόνο ηλεκτρονικά.

2. Πληρωμές φόρων πραγματοποιούνται μόνο ηλεκτρονικά.

3. Αναθερωρημένη Φορολογική Δήλωση υποβάλεται εντός τριών (3) ετών από την προθεσμία της σχετικής Φορολογικής Δήλωσης από το φορολογικό έτος 2018 και μετά.

4. Σε περίπτωση μη έγκαιρης υποβολής δήλωσης επιβάλλεται χρηματική επιβάρυνση €100 ή €200 ανάλογα με την περίπτωση.

Τόκοι και επιβαρύνσεις ανάλογα με τις περιστάσεις:

Από 01/01/2020 - 31/12/2022 1,75%

Από 01/01/2019 - 31/12/2019 2%

Από 01/01/2017 - 31/12/2018 3,5%

Από 01/01/2015 - 31/12/2016 4%

Από 01/01/2014 - 31/12/2014 4,5%

Μέχρι 31/12/2006 9%