Cyprus IP Box tax calculator
Estimate your effective tax rate and annual saving under the Cyprus IP Box in seconds. The calculator uses the full OECD nexus formula at the 2026 corporate rate of 15% — an effective rate as low as ~3%.
Cyprus IP Box tax calculator
Adjust the editable fields to match your case and see your approximate effective tax rate using the full OECD nexus formula at the 2026 corporate rate of 15%.
Overall income
Qualifying expenditure
Non-qualifying expenditure
Effective tax rate
3.0%
Indicative only — not tax advice. The formula is QP = OI × (QE + UE) / OE, capped at 100%. Actual results depend on your facts and documentation.
Three structures, three very different rates
The same €1,000,000 of IP income, taxed three ways — it all comes down to who funded the R&D.
Internally developed IP
Optimal| Overall income (OI) | €1,000,000 |
|---|---|
| Internal R&D (QE) | €500,000 |
| Nexus ratio | 100% |
| Qualifying profit | €1,000,000 |
| 80% deduction | − €800,000 |
| Taxable profit | €200,000 |
You fund your own R&D — full benefit.
Acquired IP + third-party R&D
Partial| Overall income (OI) | €1,000,000 |
|---|---|
| Acquisition cost | €300,000 |
| Unrelated-party R&D (QE) | €200,000 |
| Nexus ratio | 52% |
| Qualifying profit | €520,000 |
| 80% deduction | − €416,000 |
| Taxable profit | €584,000 |
Acquisition cost lowers the nexus ratio.
Acquired IP + related-party R&D
No benefit| Overall income (OI) | €1,000,000 |
|---|---|
| Acquisition cost | €300,000 |
| Related-party R&D | €200,000 |
| Qualifying expenditure | €0 |
| Nexus ratio | 0% |
| Qualifying profit | €0 |
No own qualifying R&D — no IP Box benefit.
How the calculator works
Qualifying profit is your IP income multiplied by the nexus ratio — the R&D you funded yourself (plus a 30% uplift) divided by all spending on the asset. The Cyprus IP Box then deducts 80% of that qualifying profit, so only the remaining 20% is taxed at 15%.
QP = OI × (QE + UE) / OE · capped at 100%
Want the detail behind each term? See who qualifies and what counts →
Worked example (2026)
Calculator FAQ
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.
Reviewed by a Cyprus-admitted advocate · Last updated 21 June 2026.