CyprusChecked 2026-08-20
What is the Cyprus IP Box?
The Cyprus IP box gives a notional deduction of 80% of qualifying profits from qualifying intellectual property.
| Effect | 80% of qualifying IP profits are deducted, giving an effective rate near 3% after the corporate rate rose to 15% in January 2026 source |
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What it means in practice
This is the reason 33 studios in this directory are registered in Cyprus and 17 of them in Limassol. It optimises tax on profit already earned, which suits a studio with a stable hit and does much less for one still spending to find an audience. The regime survived the 2026 reform that raised the headline rate from 12.5% to 15%.
Who it applies to
Cyprus companies earning income from qualifying intellectual property they developed.
Working out what a Turkish company would claim on the same spend? Put your numbers in the calculator.
Source
- https://taxsummaries.pwc.com/cyprus/corporate/tax-credits-and-incentives checked 2026-08-20