Accounting for tech companies & startups in Cyprus

Cyprus is one of the EU's best bases for a software business: the IP Box brings the effective tax on qualifying software profit to ~3%, there's an R&D super-deduction, the NID on new equity, and an 8% rate on qualifying employee share schemes. We set up the structure, document the IP Box defensibly, and keep your financials investor-ready.

For tech companies & startups

What we take off your plate

IP Box (~3%)

We assess eligibility and document the nexus calculation so your qualifying software profit is taxed at an effective ~3%.

R&D & NID

Claiming the 120% R&D super-deduction and the Notional Interest Deduction on new equity to cut the effective rate.

Share schemes

Structuring qualifying employee share/option schemes taxed at the flat 8% to attract and keep talent.

Investor-ready financials

Clean IFRS books, cap-table-aware reporting and projections for fundraising and due diligence.

Frequently asked questions

80% of qualifying IP profit (including from copyrighted software) is a deemed deduction, so only 20% is taxed at 15% — an effective rate as low as ~3%, scaled by the OECD nexus fraction based on the R&D you perform.

Yes — qualifying R&D expenditure attracts a 120% super-deduction, and the NID gives a notional deduction on new equity introduced into the company, both reducing the effective corporate rate.

Benefits from qualifying employee share/stock-option schemes are taxed at a flat 8% under the 2026 framework, subject to conditions — useful for attracting talent to a startup.

Ready to get your numbers in order?

Book a free, no-obligation consultation. We'll review where you stand and show you exactly how we can help your business or personal finances in Cyprus.

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