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Europe Common Law EU

Founders running a software or IP holdco, Cyprus

The Cyprus IP Box delivers an 80% exemption on qualifying IP income for a 2.5% effective rate, with 0% withholding on outbound royalties, dividends and interest. English language admin and common law contracts simplify cross border licensing.

IP Box 2.5%0% WHTEnglish admin
Start setup {placement} 4 min · no card required
Corp tax
15%
Fastest setup
2 weeks
Tax treaties
65
Region
Europe

What you'll need

  • No resident director required
  • Local registered office required
  • Economic-substance test applies
  • Minimum capital: EUR 1,000
  • Administrative language: English
  • Legal system: Common law

Tax and treaty profile

  • Corporate tax 15%
  • Effective rate ~2.5%
  • Tax treaties 65
  • VAT rate 19%
  • Withholding on dividends 0%
Key treaty partners
RussiaUKGreeceGermanyFranceIndia

Banking and payments

  • Banking takes 2 to 4 weeks with KYC
  • Stripe supported
  • Wise supported
  • Crypto banking available
  • EMI license framework available

Considerations

If your founders are UK tax residents

HMRC treats Cyprus as a low tax jurisdiction and applies CFC scrutiny on UK controlled Cypriot companies. If your cap table sits in the UK:

UK CFC scrutinyHMRC low tax flag