Our firm provides assistance on the Cyprus legal framework for Intellectual Property (“IP”) and can undertake any form of IP court proceedings. Our IP practice includes:
- Registration and renewal of Trade Names, Trademarks and Patents;
- Advice on the acquisition and registration intellectual property rights
- Advice on Licensing and Franchising
- Advice on Copyrights
- Advice on all related tax aspects
- Internet Law and Copyrights
- Data Protection and Privacy
- IP related litigation.
You should also bear in mind that the Cyprus Income Tax Law was amended in 2016 to harmonize the income tax imposed on IP asset owners. The IP Box Regime, as the amendment is often referred to, provides that where the intellectual property asset is recognized as an asset in the balance sheet of the Cyprus Company:
- There is an exemption of profits from the exploitation of the intangible asset: 80% of such profits (including any compensation for infringement) is treated as an expense and thus disregarded for tax purposes
- There is an exemption of profits from the disposal (i.e. royalties) or from sale of the intangible asset, after the deduction of the expenses to acquire or develop the asset: 80% of such profits is treated as an expense and thus disregarded for tax purposes. Thus only 20% of the royalties or proceeds from the sale of an intellectual property asset are taxable.
The amended legislation gives Cyprus IP an advantage and safeguards Cyprus’ future as a centre for IP rights registration and structuring.