This guide is written for freelance software developers, tech startups and IT companies. Rules change regularly and individual circumstances vary, so speak to a Tsquared accountant before acting. We regularly help clients with ip box 2.5% effective tax, freelancer vs. company, vat on cross-border digital services.
Key points
- 80% exemption on qualifying profit
- Nexus approach
- Software copyright qualifies
- Track R&D costs
Challenges you face, solutions we provide
Challenge: IP Box 2.5% effective tax
Our solution: IP Box eligibility assessed and nexus documentation kept current
Challenge: Freelancer vs. company
Our solution: Freelance vs. company comparison with real numbers before you switch
Challenge: VAT on cross-border digital services
Our solution: Reverse-charge and OSS VAT handled correctly on every cross-border invoice
Challenge: Stock options and equity
Our solution: Option schemes structured for the flat 8% regime with payroll reporting
Challenge: R&D cost tracking
Our solution: The 120% R&D super-deduction claimed with timesheet evidence
Frequently asked questions
- The Cyprus IP Box regime: what's the short answer?
- 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.
- Can Tsquared help with the cyprus ip box regime?
- Yes. We advise freelance software developers, tech startups and IT companies in Cyprus on the cyprus ip box regime and handle the filings for you.