Build your startup in Cyprus.
Keep more of what you earn. Cyprus offers some of the most competitive startup tax incentives in the EU — from the 3% IP box regime and R&D super-deductions to angel investor relief and the Startup Visa.
The short answer
Cyprus startups can combine the IP box, which taxes qualifying IP profits at an effective 3%, with an enhanced deduction for R&D spend, relief for angel investors and the Startup Visa for founders from outside the EU. Other company profits are taxed at 15%.
- IP box effective rate
- 3%
- Corporate tax
- 15%
- Loss carry-forward
- 7 years
80% of qualifying IP profits exempt from corporate tax. Effective rate: 3%. Applies to patents, software, algorithms and qualifying intangibles.
Qualifying R&D expenditure receives a 100% normal deduction plus an additional 20% enhanced deduction — 120% total, reducing your taxable profit.
Approved investors in CIPA-approved startups can deduct 50% of their investment from personal taxable income.
Why Cyprus for tech and IP companies?
Cyprus has deliberately positioned itself as a European hub for technology companies, IP holding structures and R&D-intensive businesses. The IP box regime — introduced in 2016 and compliant with OECD BEPS Action 5 — allows qualifying companies to pay an effective corporate tax rate of just 3% on profits derived from qualifying intellectual property.
The regime follows the nexus approach, requiring that qualifying IP was substantially developed through R&D activities in Cyprus. This has attracted software companies, pharma IP holders and technology groups looking for a credible, substance-based EU jurisdiction rather than a pure tax haven structure.
The Cyprus Startup Visa allows non-EU founders to establish and operate an innovative startup in Cyprus. Approved applicants receive a 2-year renewable visa and access to CIPA's ecosystem support, mentoring and investor network.
Building a startup in Cyprus?
Ask Taxerly about IP box eligibility, R&D deductions and angel investor relief, or book a consultation with a licensed Cyprus advisor.
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