Cyprus IP Box Savings Calculator
Calculate how much your company can save with the Cyprus IP Box regime, up to 80% exemption on qualifying IP income.
Enter Your IP Income
Includes royalties, licence fees, SaaS revenue, embedded IP income, and IP disposal gains.
Disclaimer
This calculator provides an estimate based on the Cyprus IP Box regime (Income Tax Law, Section 9(1)(e)). Actual tax savings depend on the OECD modified nexus approach, transfer pricing documentation, and individual circumstances. The 80% exemption applies to qualifying profits only. This does not constitute tax advice. Please consult a qualified tax professional for a definitive calculation.
The Cyprus IP Box regime lets qualifying companies exempt 80% of the profit from intellectual property, bringing the effective tax rate on that income down to about 3% (80% of profit deducted, the rest taxed at 15%). The benefit is limited by the OECD modified nexus fraction based on your own R&D.
How it works
- Qualifying profit is multiplied by the nexus fraction (your qualifying R&D and unrelated outsourcing over total expenditure, with a 30% uplift cap).
- 80% of that qualifying profit is exempt; the remaining 20% is taxed at the 15% corporate rate.
- This produces an effective rate of roughly 3% on fully self-developed IP income.
- The calculator compares standard 15% tax with the IP Box outcome and shows the annual saving.
Worked example
Take a company with €1,000,000 of qualifying, fully self-developed IP profit in 2026. The IP Box exempts 80%, leaving €200,000 taxable. At the 15% corporate rate the tax is €30,000, an effective rate of 3%, compared with €150,000 of tax without the regime, a saving of €120,000.
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