Industry
Accountants for Software & Tech Developers in Cyprus
Tsquared helps Cyprus software developers and tech companies use the IP Box regime, structure contractor and employee pay, handle VAT on digital services and keep investor-ready accounts.
Challenges you face - solutions we provide
The problems freelance software developers, tech startups and IT companies bring to us, and exactly how we solve them.
Guides for Software & Tech Developers
The Cyprus IP Box regime
Under the Cyprus IP Box, 80% of qualifying profit from software and patents is exempt, giving an effective tax rate as low as 2.5% for eligible tech companies.
Tax for freelance developers
Freelance developers in Cyprus pay personal income tax on profits plus Social Insurance and GHS, and can often save by moving to a company once income grows.
VAT on digital services
Cyprus developers selling B2B services abroad usually apply the reverse charge, while B2C digital sales in the EU use the OSS scheme at the customer's VAT rate.
Setting up a tech startup
A Cyprus private limited company can be registered in about a week and gives startups access to the 15% corporate tax rate, IP Box and EU market.
Employee stock options
Cyprus taxes stock options when exercised, but from 2026 approved employer schemes are taxed at a flat 8% (up to €1m over 10 years), which helps attract tech talent.
R&D tax deductions
Cyprus allows a super-deduction of 120% on qualifying R&D expenditure, lowering tax for development-heavy companies.
Contractors vs. employees
Hiring developers as contractors or employees changes Social Insurance, payroll and permanent-establishment risks, so classify each role carefully.
Relocating a tech company
Many tech companies move to Cyprus for the 15% corporate rate, IP Box and 50% employee exemption, with the Business Facilitation Unit speeding up work permits.
SaaS revenue recognition
SaaS companies recognise subscription revenue over the service period under IFRS 15, which affects reported profit, deferred revenue and investor metrics.
Investor reporting for startups
Monthly management accounts with burn, runway and MRR keep Cyprus startup investors confident and make the next funding round faster.
Tax for crypto and Web3 developers
Cyprus crypto developers and token projects need careful classification of token income, VAT and CySEC rules under MiCA.
Accounting for game developers
Game studios in Cyprus can use the IP Box on qualifying game IP and must handle platform revenues, VAT and royalty withholding correctly.
Home office and equipment
Developers can deduct equipment, software licences and a proportion of home-office costs in Cyprus when they are used for the business.
Exit planning for tech founders
Gains on selling shares in a Cyprus company are generally tax-free unless the company owns Cyprus property, making Cyprus attractive for founder exits.
Talk to a Cyprus accountant this week
Free 30-minute consultation. Clear fixed-fee proposal.