VAT
The acquisition of intellectual property rights from anywhere in the world by a Cyprus company is treated as a service rendered to the company which will create an obligation for it to register for VAT and to account for VAT on services received in accordance with the reverse charge rule. No registration obligation will be created if the intellectual property right is developed organically rather than being purchased.If the company charges royalty fees to taxable persons within the European Union area it will also have to register for VIES
How COI Can Help you
Set up Cyprus IP holding structure
Advise on Corporate Statutory Compliance matters
Advise on Existing IP – Transfer to Cyprus
Ongoing Support after initial set-up
Cyprus is signatory to the following international conventions relevant to IP
EC Regulation on the Community Trademark (CTMR)
Convention Establishing the World Intellectual Property Organization (WIPO)
The Madrid Agreement Concerning the International Registration of Marks (Madrid Agreement, MMA) and Protocol to the Madrid Agreement
The Patent Cooperation Treaty (PCT)
Berne Convention for the Protection of Literary and Artistic Works
Paris Convention for the Protection of Industrial Property Geneva Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of their Phonograms
WIPO Performance and Phonograms Treaty (WPPT)
Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations Trademark Law Treaty
WIPO Beijing Treaty on Audio-visual Performances
Maximum 2% Tax on Profits generated from IP
Having any type of intellectual property registered through a Cyprus company will benefit you from enjoying an 80% tax exemption of your worldwide income from IP use (lease or sale). In other words, the maximum effective tax rate on your income generated through the use of your IP through Cyprus will be as low as 2%, while at the same time benefiting from Cyprus’ wide double tax treaty network.