Intellectual Property (IP) can be one of the most valuable assets of an individual or an organisation. Choosing the right location for the centralisation and management of IP is a highly important commercial decision. Cyprus offers a highly efficient IP tax regime that is coupled with the protections afforded by an EU Member State, as well as being a signatory to all major international IP treaties and protocols.
IP can take several forms: - Copyrights, which can include literary works, dramatic works, musical works, scientific works, artistic works, sound recordings, films, broadcasts, published editions, databases, publications, software programmes - Patented inventions
Royalties are the payments of licence fees or commissions by one individual or entity to another for the use of IP. The aim is to generate the income arising from these rights in the most tax efficient manner possible. Cyprus can be very attractive for establishing a royalty company thanks to its competitive tax regime, access to EU Directives and its extensive network of Double Taxation Agreements (DTAs).
EU directives and regulations relating to IP protection apply and have been introduced into Cyprus domestic legislation. With a single IP registration process, IP rights owned by Cyprus companies enjoy full protection in all other EU Member States but IPs need not be registered in Cyprus in order to benefit from the IP regime.