Model the OECD nexus fraction, qualifying IP profit and indicative 2026 Cyprus tax outcome — transparently, in your browser.
Enter annual figures for one qualifying IP portfolio. The calculator applies the 80% IP Box deduction to the portion of net IP profit supported by the nexus fraction, then applies the 2026 Cyprus corporate tax rate of 15%.
Confirm that the asset is qualifying IP, such as copyrighted software or a qualifying patent, rather than marketing-related IP such as a trademark.
Map qualifying R&D expenditure, related-party outsourcing and acquisition costs. The benefit follows genuine development activity.
Separate qualifying IP profit from non-qualifying revenue and coordinate the position with transfer pricing, substance and annual tax compliance.
The Cyprus Ministry of Finance confirms an 80% exemption of net qualifying IP profit calculated under the nexus approach. At the 15% corporate tax rate applying from 2026, a fully qualifying nexus position can produce an effective rate of approximately 3% on that qualifying profit. Cyprus Ministry of Finance — Tax Incentives.
This calculator is a screening and modelling tool, not a tax opinion, eligibility confirmation or filing computation.
We can turn the model into a documented position: qualifying-asset review, nexus schedules, income segmentation, transfer pricing alignment, substance analysis and annual compliance. For groups moving existing IP into Cyprus, we also coordinate valuation and transaction support.
A fully qualifying IP Box position can produce an effective Cyprus corporate tax rate of approximately 3% on qualifying IP profit: 80% of qualifying profit is deducted and the remaining 20% is taxed at the 15% corporate rate. The actual effective rate can be higher where the nexus fraction is below 100% or other adjustments apply.
The nexus fraction links the IP Box benefit to qualifying R&D expenditure. In-house R&D and qualifying unrelated-party R&D generally support the numerator, while related-party outsourcing and IP acquisition costs can reduce the fraction, subject to the permitted uplift.
No. It is an indicative modelling tool. Eligibility depends on the type of IP, income, R&D activity, ownership, expenditure history, documentation, transfer pricing and the company’s full facts.
The tool is indicative. We can review the underlying facts, documentation and tax position and provide a scoped professional engagement.