Cyprus IP Box vs other EU IP boxes
At an effective rate as low as ~3%, the Cyprus IP Box is among the most competitive in the EU — well below the Netherlands (9%) and Ireland (10%). Here's how it stacks up, and what makes Cyprus stand out beyond the headline rate.
EU IP box comparison (2026)
Indicative effective rates, from Tax Foundation Europe (2025), updated for Cyprus's 2026 reform.
| Country | IP Box effective rate | Standard corporate rate |
|---|---|---|
| Cyprus | ~3% (2026) | 15% |
| Malta | 1.75% | 35% |
| Belgium | 3.75% | 25% |
| Luxembourg | ~5% | ~24.9% |
| Poland | 5% | 19% |
| Netherlands (Innovation Box) | 9% | 25.8% |
| Ireland (Knowledge Development Box) | 10% | 12.5% |
Cyprus vs the main alternatives
vs Ireland
Cyprus ~3% vs Ireland's Knowledge Development Box at 10% — and Cyprus covers a broader range of IP income.
vs Netherlands
Cyprus ~3% vs the Dutch Innovation Box at ~9%, with simpler operation for smaller software companies.
vs Malta
Malta's ~1.75% is lower on paper, but Cyprus pairs ~3% with broad income scope and a wide treaty network.
vs Luxembourg
Cyprus ~3% vs Luxembourg's ~5%, with a lower headline corporate rate (15% vs ~24.9%).
Why founders choose Cyprus
It isn't only about the lowest number — it's the whole package.
Broad income scope
The benefit applies to a wide range of IP income — royalties, licence fees, software revenue and IP embedded in product sales — not just patents.
0% on disposal gains
Capital gains from selling qualifying IP are fully exempt where the disposal is capital in nature.
EU & OECD-compliant
An EU member state, with a regime built on the OECD BEPS Action 5 modified-nexus standard — stable and defensible.
Common-law system & treaties
An English-language, common-law-influenced legal system and an extensive network of double-tax treaties.
Comparison 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.