A regime granting an 80% notional deduction on qualifying IP profits. The remaining 20% is taxed at the 15% standard corporate tax rate, i.e. 3% effective on fully qualifying IP profits. Nexus, own development and substance are conditions. Trademarks and marketing IP typically do not qualify. The older 2.5% figure belonged to the 12.5% standard rate.
More on this siteA private company limited by shares under Cyprus company law. An EU limited company with shareholder liability limited to their shares, English-language contract practice and filing duties at the Registrar of Companies.
More on this siteEffective management where the company is meant to be resident: local decision-makers, documented resolutions, a reachable address and, depending on the model, staff or operations. A letterbox is not enough.
More on this siteA director resident or present in Cyprus, with documented governance, decision-making and reporting duties. CyStarter describes this without nominee, instruction-bound or fiduciary rhetoric.
More on this siteOECD idea (BEPS Action 5): IP Box relief follows own development activity. IP that is merely held and not self-developed generally does not fully qualify.
More on this siteA personal residence regime for individuals who are Cyprus tax resident and not treated as domiciled there. Typically an exemption from Special Defence Contribution (SDC) on dividends and interest for 17 tax years, not from income tax on employment or business profits. Separate from the Ltd’s corporate tax.
More on this siteBesides the 183-day test, the 60-day rule can lead to Cyprus tax residence if, in the same year, presence, a home and an economic tie in Cyprus coincide and no more than 183 days are spent in any other single state. It does not replace the other state’s rules.
More on this siteA treaty between states allocating which state may tax certain income and how double taxation is relieved. Cyprus maintains an extensive treaty network, including with Germany.
More on this siteHome-state rules under which income of a low-taxed foreign company can be attributed to domestic shareholders. A Cyprus Ltd does not automatically switch those rules off.
More on this siteThe Cyprus companies registry number at the Registrar of Companies. Statisfy Consulting Ltd is registered under HE 424938.
More on this siteCyprus VAT ID in the form CY…, issued by the tax authority. It appears in the legal notice of Statisfy Consulting Ltd. and applies to taxable supplies.
More on this siteCyprus is an EU member with 15% corporate tax, substance requirements and a European legal framework. Queries such as tax haven, zero tax or letterbox company do not describe CyStarter’s offering and are corrected here, not targeted.
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