Cyprus 2026

IP Box Calculator

Estimate the Cyprus IP Box benefit: the 80% deduction, the 20% taxable portion at 15% and your effective rate, with an optional nexus fraction.

How the profit is taxed

Exempt (80% deduction): 80.0%Taxable portion (20%): 17.0%IP Box tax (15% on 20%): 3.0%3%effective rate
  • Exempt (80% deduction)80.0%
  • Taxable portion (20%)17.0%
  • IP Box tax (15% on 20%)3.0%
Qualifying IP profit (after nexus)€500,000
80% deemed deduction€400,000
Taxable portion (20%)€100,000
IP Box tax(15%)€15,000
Effective rate on qualifying profit3%

Versus full corporate tax

Tax without IP Box (15%)€75,000
Tax with IP Box€15,000
Annual saving€60,000

The Cyprus IP Box treats 80% of qualifying IP profit as a deemed deduction, so only 20% is taxed at the 15% corporate rate — an effective rate of 3% on fully nexus-compliant income (2.5% before the 2026 rate rise). The nexus fraction reflects the qualifying R&D the company itself incurred; acquired IP and related-party outsourcing reduce it. Indicative only — qualifying status, income allocation and the nexus calculation should be documented and confirmed.

Disclaimer: These calculators provide general estimates based on the 2026 Cyprus tax framework and standard assumptions. They do not account for every personal circumstance, allowance or exemption and are not tax advice. Speak to us before acting on any figure.

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