The Cyprus IP Box for software, SaaS & AI companies
Copyrighted software is a core qualifying asset, which makes the Cyprus IP Box especially powerful for software businesses. If your company owns and develops its software, you can tax that profit at an effective rate as low as ~3% in 2026.
Why software qualifies
The Cyprus IP Box covers copyrighted software as a qualifying intangible asset in its own right — you do not need a patent. Because most software companies build their own product, their nexus ratio is high, which means the full benefit and the lowest effective rate.
- Copyrighted software qualifies — no patent required.
- Self-developed code gives a 100% nexus ratio.
- Subscription, licence and embedded-IP income all count.
- AI/ML systems qualify as software (and any patents too).
Effective tax rate for an owner-developed SaaS
~3%
15% corporate tax on just 20% of qualifying profit (2026).
Estimate your rate →Which software income qualifies
Income that comes from your qualifying software, less the direct costs of earning it.
SaaS subscriptions
Recurring fees customers pay to use software you wrote.
Licence fees & royalties
Payments for the right to use your software or code.
IP embedded in product price
The part of a product or service price that reflects your software.
Pure resale or unrelated trading income does not qualify, and marketing IP (brands, trademarks) is always excluded.
Built for product companies
SaaS & cloud platforms
Subscription software you build and own.
AI & machine learning
Models, training pipelines and software you develop in-house.
App & game studios
Mobile, web and game software protected by copyright.
Fintech & deep tech
Proprietary platforms, algorithms and patented inventions.
Software & SaaS 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.