Cyprus ideal Intellectual Property location

Intellectual Property (IP) can be one of the most valuable assets of an organisation. Choosing the right location for the centralisation and management of IP is a very important strategic business decision. The ideal location to establish an IP structure is one that can serve the organisation's business strategies/model, safeguard and protect its IP and contribute to its tax optimisation.
Cyprus offers an efficient IP tax regime coupled with the protection afforded by EU Member States and by the signatories of all major IP treaties and protocols.

The Cyprus IP tax regime

The IP tax regime covers a wide range of intangibles including:

Copyrights, which may take any of the following forms: literary works, dramatic works, musical works, scientific works, artistic works, sound recordings, films, broadcasts, published editions, databases, publications, software programs
Patented inventions
Trademarks (and service marks), designs and models that are used or applied on product

The above is a non-exhaustive list.

Registrable IPs need not be registered in Cyprus to benefit from IP regime.

Tax benefits of Cypriot IP companies

The new provisions provide exemptions from tax of income related to IP. More specifically:

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

Example:-

The expected annual tax for the Cyprus IP Company will be as follows:
Annual royalty income	€ 500,000
Direct expenses (say)	(200,000)
Net income	300,000
80% deemed deduction	(240,000)
Taxable income	60,000
@12.50% Income tax	7,500
Effective tax rate	2.50%

Under the majority of Cyprus double tax treaties the withholding tax on royalty payments is 0%.

The EU Directives and Regulations relating to IP protection apply and have been introduced into Cyprus domestic legislation.

With a single IP registration process in Cyprus, IP rights owned by Cyprus companies may enjoy full protection in all EU Member States.

How can M.P Multi-Count Services Limited help you

Cyprus IP holding structures
Corporate statutory compliance matters
Existing IP - tax efficient transfer to Cyprus IP company
Ongoing support after initial set-up

Cyprus is signatory to the following international conventions relevant to IP

European Community Trademarks
Convention Establishing the World Intellectual Property Organisation (WIPO)
WIPO
The Madrid Agreement Concerning the International Registration of Marks (the Madrid Agreement) and Protocol to the Madrid Agreement
The Patent Cooperation Treaty
Berne Convention for the Protection of Literary and Artistic Works
Paris Convention for the Protection of Industrial Property
Convention for the Protection of Producers of Phonograms Against Unauthorised Duplication of Their Phonograms
WIPO Performance and Phonograms Treaty
Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations
Trademark Law Treaty
WIPO Beijing Treaty on Audiovisual Performances

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Company Formation

Re-Domiciliation-(In Greek)