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
For 2026 corporate examples: UE = min(30% × QE, A + R); OE = QE + A + R; N = min(1, (QE + UE) / OE). The deduction is 80% × OI × N. Taxable IP income is OI minus that deduction, not merely 20% of the nexus-adjusted portion. At 15%, the effective rate on OI is 15% × (1 − 80% × N).
QP = OI × (QE + UE) / OE · capped at 100%
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.
IPBox Cyprus editorial team · Ebrovia Ltd · Updated September 26, 2026.
Sources & further reading
Related guides
- Cyprus IP Box Regime 2026: The Complete Guide
- Cyprus IP Box vs Other EU IP Boxes (2026 Comparison)
- The Cyprus IP Box for Startups: A Founder's Guide (2026)
- Does Software Qualify for the Cyprus IP Box? (2026 Guide)
- How the Cyprus IP Box is calculated: the nexus fraction explained (2026)
- How Much Does the Cyprus IP Box Cost? (2026)
- How Long Does the Cyprus IP Box Take? Timeline & the Tax Ruling (2026)
- Cyprus IP Box Requirements & Substance (2026)
- Cyprus IP Box versus Ireland KDB: eligibility, tax base and claim timing
- Cyprus Non-Dom Status & the 60-Day Rule Explained (2026)
- Cyprus corporate tax 2026 reform: what changed (and what it means for IP)
- Cyprus IP Holding Company: Structure & Tax (2026)
- Cyprus IP Box for AI and machine-learning businesses