Cyprus IP Holding Company
A Cyprus Intellectual Property Holding Company is mostly used for developing and managing intellectual property.
The new legislation introduced in Cyprus regarding income for intellectual property rights makes Cyprus one of the best Jurisdictions in the world and probably the most favored in the EU for establishing an Intellectual Property Holding Company.
The main benefits derived from the introduction of the new legislation known as the ‘IP box’ are:
- Five-year amortization period
- 80% exemption of profits from the exploitation of IP rights
- Exemption of profits on disposal of IP rights or full exemption from tax if the assets are held in a separate company and the shares of that company are disposed of instead of the assets themselves
- Net royalty profits are considered operating profits and are taxed at 12,5% but the effective tax rate in many cases is as low as 2,5%, one of the lowest in the EU
- Cyprus’s legislation is in full compliance with the OECD directives
To start the incorporation process follow this link