Do AI model weights automatically qualify?

No. Their legal protection, ownership and tax classification require analysis. Do not assume every weight file is copyrighted software.

Are all AI subscription fees taxed at 3%?

No. Qualifying assets, attributable net income, full nexus and the relevant corporate assumptions must be established.

For AI & machine-learning companies

The Cyprus IP Box for AI & machine-learning companies

An AI business may qualify through original software or another eligible asset, but not every model, weight file, dataset or generated output automatically has the necessary rights or tax treatment. Identify the protected asset, the company’s rights, attributable net income and supported nexus expenditure before calculating relief.

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Why it fits

Why AI & ML companies qualify

Original program expression can be protected by copyright; ideas and principles are not protected as program expression. Do not assume that model architecture, trained weights, raw data and source code all share one automatic copyright conclusion.

Assess software, model weights, datasets and generated outputs separately.
Calculate nexus from supported qualifying and overall expenditure.

Illustration at full nexus

~3%

15% × 20% = 3% on qualifying net IP income at full nexus, before other adjustments. A lower nexus raises the effective rate.

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What counts

Which AI income qualifies

API charges, subscriptions and licences require analysis of what the customer actually receives. Fees do not qualify merely because they are billed per token or described as AI revenue.

API & usage-based revenue

Fees customers pay to call your model or AI API.

SaaS subscriptions

Recurring access to an AI product you built and own.

Licence fees & royalties

Payments to use your models, weights or software.

Pure resale or unrelated trading income does not qualify, and marketing IP (brands, trademarks) is always excluded.

Who it's for

Built for AI builders

Foundation & fine-tuned models

Proprietary LLMs, vision and speech models you train.

ML platforms & MLOps

Training, orchestration and serving software you own.

Applied AI & agents

Vertical AI products, copilots and autonomous agents.

Data & inference pipelines

In-house pipelines that create defensible IP.

Answers

AI & machine-learning FAQ

Estimate your effective rate Cyprus IP Box for software & SaaS Check if you qualify first Read the full Cyprus IP Box guide

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Talk to a Cyprus IP Box specialist.

Book a free, no-obligation assessment. We'll confirm whether you qualify, estimate your effective rate, and give you a fixed quote — confidentially, usually within one business day.

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IPBox Cyprus editorial team · Ebrovia Ltd · Updated September 27, 2026.