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80% of your IP profit, tax-free.

The Cyprus IP Box deducts 80% of the qualifying profit your company earns from software or patents it developed. We help with the application, and Sumly keeps the records behind your claim.

Book a free callHow it works
  • Software and patents
  • Claimed in your tax return
  • Records kept per asset

The maths, in three numbers.

Of qualifying profit deducted
80%
Deducted in the company's tax return like a cost, though you never paid it.
Corporate tax on the rest
15%
The standard Cyprus rate from 2026, on the 20% that's left.
Effective rate
3%
On qualifying profit, when you built the IP yourself.

Through tax year 2025 the corporate rate was 12.5%, so the effective rate was 2.5%.

What qualifies.

The company has to own the IP and have built it. Check that yours qualifies with your adviser or auditor before the first invoice, not at year-end.

  • Software you built

    Copyrighted software the company developed, such as a SaaS product or an app.

  • Patents

    Patents for inventions the company developed itself.

  • Not brands

    Trademarks, brands and other marketing assets never qualify. The regime rewards development, not ownership.

  • Profit, not revenue

    The deduction applies to what the asset earns after its direct costs. Support and consultancy hours usually sit outside it.

The more you build, the more you keep.

The nexus fraction scales the deduction by how much of the development you did yourself or paid unrelated contractors to do. Build it in-house and the fraction stays at 1.00, so you keep the full 80%.

  • Development costs coded to each asset
  • Bought-in IP and work by related companies kept apart
  • The fraction worked out from your ledger

How it works.

The full process typically takes 3 to 6 months. The records behind your claim live in your books, and the deduction lands in your tax return.

Book a free call
  1. Day 1

    Tell us what you've built

    A 30-minute call about the asset, who built it and where its income comes from. You leave knowing what the application needs and what to track.

  2. We help with the application

    We work through the application with you. Every application is different, so our fee is set case by case.

  3. From the first invoice

    Tracked per asset

    IP Box tracking, a separate feature in Sumly, keeps income and development costs apart for each qualifying asset. The nexus fraction builds as you go.

  4. Year-end

    Claimed in the tax return

    Sumly works the 80% deduction into the corporate tax return it prepares. You review and file it on Base. Sumly files it on Plus, and your Sumly certified bookkeeper on Premium.

  5. Every year after

    Evidenced again

    The records carry on, so next year's claim is documented before you need it.

IP Box, answered.

Anything else? Ask us on WhatsApp, or book a call below.

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A Cyprus tax rule that deducts 80% of the qualifying profit a company earns from IP it developed itself, meaning patents and copyrighted software. The other 20% is taxed at the 15% corporate rate, so the effective rate can be as low as 3%.

Cyprus companies whose profit comes from IP they developed themselves. That means product and SaaS companies with their own code, and companies holding patents on their own inventions.

Yes, if the company developed it and it's protected by copyright. Buying finished software and reselling it doesn't count, and trademarks and brands never qualify.

Start with a free call about what you've built, and we help you with the application from there. The deduction itself is claimed in the company's corporate tax return, asset by asset. What the claim rests on is the evidence behind the figures, and you build that during the year.

The full process typically takes 3 to 6 months. Keep tracking from the first invoice in the meantime, so the records are ready when you claim.

Our fee is set case by case, because every application is different. It's typically around €4,000, excluding VAT. Government fees come on top, from €1,000 to €2,000 depending on whether you take the express route. It all starts with a free call about what you've built.

It scales the deduction by how much of the development you did. Your qualifying spend is your own R&D plus what you paid unrelated contractors. The fraction is that spend plus an uplift of up to 30%, divided by your total development spend, and it never goes above 1.00. Buying the IP in, or paying a related company such as a sister company to build it, can pull the fraction below 1.00, and the effective rate rises toward 15%.

With the first invoice for the asset. The claim needs a year of per-asset income and cost records behind it. People lose the claim by starting the records late.

Not credibly. Figures rebuilt at year-end from memory are exactly what an auditor is entitled to doubt. If you're starting now, start tagging now.

Sumly prepares it from your books. On Base you review and file it yourself. On Plus, Sumly files it for you. On Premium, your Sumly certified bookkeeper does.

Talk through your claim.

Tell us what you've built and who built it. We'll go through what the application needs, and what to track from the first invoice.

  • What the nexus fraction means for you
  • Which costs to tag to each asset
  • How the application works for your company

30 minutes, by video, free

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