Cyprus Company Formation for IT Consultants and Software Agencies
A Cyprus company for IT consultants and software agencies is usually bought for one of two reasons — a client that will only contract with an EU-registered supplier, or a tax bill that has outgrown the country the business started in. Both are legitimate. Neither is the thing that decides whether the move works. What decides it is duller and more specific: who owns the code when the invoice is paid, whether the intellectual-property incentives you have read about actually apply to what you build, and whether your VAT treatment survives a client in Berlin, a client in London and a client in Austin all being billed in the same month. This page works through those in the order a technical business hits them, and is explicit about the questions that need a licensed Cyprus tax advisor rather than a landing page.
Written by Renato Giurea, founder of CyPRO One · Updated 21 August 2026
Regulated work described on this page is carried out by licensed Cyprus partners.
Where you are now
Your contracts decide who owns the work, and Cyprus has a default you may not expect
Most agencies arrive with an instinct borrowed from the UK or the US: a contractor keeps copyright in what they build unless the contract assigns it. Cyprus starts from the opposite position for commissioned work. Under section 11(1) of the Copyright and Related Rights Law of 1976, copyright belongs first to the author — but where creation of a work is undertaken to the order of a person or organisation that is not the author's employer, under a contract for services, the copyright is deemed to have been transferred to whoever commissioned it, subject to any agreement between the parties excluding or limiting that transfer. Read that in both directions before you sign anything. The developer you subcontract transfers to you by default. The client who commissions a platform from you takes it by default too, which is fine when that is what you sold and expensive when you assumed you were licensing a reusable core. The proviso that does this opens with the words "notwithstanding the provisions of subsection (5) of section 12", and that opening matters more than it looks. Section 12(5) is the rule that an assignment of copyright or an exclusive licence is invalid unless made or granted in writing; section 11(1) is expressly carved out of it. So the deemed transfer happens whether or not anyone signed anything, and an agreement excluding or limiting it is effective on the section's own terms — "subject to any agreement between the parties" — with no writing requirement attached. That is not licence to leave it verbal. An unwritten carve-out you cannot prove two years later is, in practice, no carve-out at all.
One day rate, three VAT answers
A consultancy billing across borders has to answer a different VAT question per invoice, and the answer rarely depends on where the work was done. For services, Article 10Α(2) of the VAT Law puts the place of supply where the customer belongs when the customer is a relevant taxable person, and where the supplier belongs otherwise. That single sentence produces most of the outcomes people find confusing: a business client in Germany with a valid VAT number takes the supply outside Cyprus VAT and accounts for it themselves; a consumer in Germany does not; a business client in the United States is outside the EU system altogether. It also runs the other way, which is the part that catches new companies. Article 11 treats services you buy from abroad — the cloud bill, the overseas contractor, the design tool subscription — as though your own company had supplied them to itself in Cyprus, so you declare the VAT and, where you have full recovery, deduct it in the same breath.
The team is contractors, the code is everywhere, and the incentives assume otherwise
Technical businesses distribute themselves naturally: a founder in one country, three contractors in three others, infrastructure in a fourth. The Cyprus tax incentives written for this sector do not assume that shape. The deduction for research and development expenditure in Article 9(1)(δ) of the Income Tax Law is available to a person carrying on a business who has the economic ownership of the intangible asset that arises, or may arise, from the expenditure. If the people writing the code retain rights in it because nobody papered the arrangement, the company paying for the work may not have the ownership the deduction is written around. That makes the contracting question in the section above a tax question as well as a legal one, and it is the single most common gap we see in files that arrive already half-built.
What to get right
Settle the IP chain before the first invoice, not at the first due diligence
The moment IP ownership becomes urgent is always the worst moment: an acquirer's lawyers, an enterprise client's procurement review, or an investor's data room. Build the chain deliberately instead, and keep two different rules apart while you do it. Where the work is commissioned under a contract for services, section 11(1) already moves the copyright to whoever ordered it, expressly notwithstanding section 12(5) — so nothing here fails for want of a signature. What does need writing is anything that genuinely is an assignment or an exclusive licence: buying in a third-party component, taking an exclusive licence from a founder personally, granting one to a client. Section 12(5) makes those invalid unless made or granted in writing, and that is a validity rule rather than a nicety. Everything else is evidence. An agreement excluding or limiting the section 11(1) default is effective without being written down, but "we always reuse our framework" is not an agreement, and an agreement nobody recorded is one you will not be able to prove in a data room. Note too that protection itself needs no registration — section 3(2) of the Law makes it turn on the work being fixed in material form and being original, with the express addition that recognition of protection does not depend on the application of any further criterion — so the register cannot rescue a chain your contracts did not build. Software sits squarely inside that: section 3(1) protects literary works "including computer programs", while section 3(3) puts ideas, procedures, systems, methods of operation and principles outside protection altogether. Our partner law firm provides legal advice on the contract structure; CyPRO One coordinates that engagement and keeps the documents in one place in your client portal rather than in three inboxes.
Understand the IP Box arithmetic, and who is allowed to advise you on it
Article 9(1)(κ) of the Income Tax Law allows a deduction of 80% of the qualifying profits generated from a qualifying intangible asset, and lets a person waive all or part of that deduction for any tax year. The 20% that remains is taxed at the ordinary corporate rate, which the 2026 reform raised from 12.5% to 15% — so the arithmetic gives 3% of qualifying profit from the 2026 tax year, where the same arithmetic at 12.5% produced the 2.5% every article written before 2026 still quotes. Treat 3% as a floor rather than a rate, because two filters sit in front of it. The first is the nexus approach: the Ministry of Finance describes the relief as 80% of the net profit "as calculated in the nexus approach" derived from qualified intangible assets, so the fraction of profit that qualifies depends on the research and development the business itself carried out, and a company that bought or outsourced the work does not reach the floor. The second is what the regime is for. It relieves income from an intangible asset — royalty income, embedded income and other qualifying income — not revenue in general, so an agency invoicing days at a day rate has no IP income to relieve however much code those days produce. Three more details. What counts as a qualifying intangible asset, and how qualifying profits are computed, are set by Regulations issued by the Council of Ministers under that paragraph rather than by the section, so eligibility is a technical determination and not a reading of the statute. Where an asset could fall within both paragraph (ε) — which covers intangibles as defined in the Patents Law, the Copyright Law and the Trade Marks Law — and paragraph (κ), the Law directs that paragraph (ε) applies instead, a different provision with different mechanics. And where the computation produces a loss rather than a profit, the amount that can be set off and carried forward under Article 13 is restricted to 20% of it. Now the boundary: CyPRO One does not advise on, coordinate, or sell IP Box structuring. It is specialist Cyprus tax work and it needs a licensed Cyprus tax advisor engaged directly — we will say so plainly rather than take the work.
Know that the R&D super-deduction and the IP Box are an either/or, and that it expires
The 2026 reform added something narrower and more immediately useful to a services-heavy software business. Article 5(α)(i) of the Income Tax (Amending) (No. 4) Law of 2025 rewrote the provisos to Article 9(1)(δ): for expenditure incurred in the years 2025 to 2030 inclusive — including capital-nature expenditure deductible under paragraph (λ) — an additional deduction equal to 20% of that expenditure is granted, and a person may waive it in part or in full for any tax year. It is given in the year the expenditure is incurred, except for capital expenditure, where it follows the years in which the paragraph (λ) deduction runs. Then the sting: proviso (iii) refuses the extra 20% for expenditure relating to a qualifying intangible asset for which the IP Box in paragraph (κ) has been applied in any year, the current one included. So for a given asset it is one regime or the other, the choice has history attached to it, and the window closes after the 2030 year. That is a modelling exercise on your own numbers, run by our ICPAC-registered accounting partner or a licensed tax advisor — not something to decide from a table.
Do not assume you can amortise the codebase you contributed for shares
A common founder move is to transfer an existing product into the new Cyprus company in exchange for shares, put a confident valuation on it, and start writing it off. Article 9(1)(λ) of the Income Tax Law does allow capital expenditure on acquiring or developing an intangible asset to be spread over its life on a reasonable basis in line with accepted accounting principles, up to a maximum of twenty years, and the 2026 reform added that assets with an indefinite useful economic life are spread over twenty years. But the same reform added a limit aimed squarely at this move: capital expenditure on intangibles introduced into a company against an issue of share capital may not exceed the market value of those assets at the date they are introduced into the business, and no deduction is granted at all if that market value is not documented to the Commissioner's satisfaction. "Documented" is doing real work in that sentence. Get the valuation done properly and contemporaneously, or plan on no deduction.
Get the invoicing mechanics right, including the monthly list nobody mentions
Registration for VAT becomes compulsory once taxable transactions over the preceding twelve months exceed €15,600, or will exceed that within the next thirty days, and most consultancies register voluntarily well before that because business clients expect a VAT number and because input VAT on equipment, software and professional fees becomes recoverable. What surprises people is the reporting that comes with cross-border B2B work. Under Article 42Γ(2) of the VAT Law, a taxable person who during a month has supplied goods or services to a person registered in another member state must file a recapitulative statement with the Commissioner no later than the fifteenth day after the end of that month — and paragraph (γ) of that subsection covers services supplied under Article 10Α on which the customer accounts for the tax under Article 11. Monthly, not quarterly, and services count. If you filed last month and made no such supplies this month, you generally still file a nil statement. Article 45Β charges €50 for a statement the Commissioner has not received by the deadline, and Article 45Α charges €15 for one filed with omissions or inaccuracies left uncorrected. Our ICPAC-registered accounting partner handles the VAT registration, the returns and these statements; CyPRO One keeps the calendar and chases the inputs.
Decide the contractor-or-employee question deliberately
Agencies scale through contractors because it is fast, and the arrangement has consequences on three separate axes that are worth separating. Ownership: a contract for services engages section 11(1), so the work is deemed transferred to whoever commissioned it unless the agreement says otherwise — write it down anyway, because section 12(5) requires writing for validity. Tax: the R&D deduction in Article 9(1)(δ) turns on the company having economic ownership of the resulting intangible, which is a paperwork question before it is an accounting one. Contributions: if you engage someone as an employee instead, the company becomes an employer, with 8.8% of insurable earnings withheld from the employee and 8.8% paid by the company to the Social Insurance Fund, plus 1.2% to the Redundancy Fund, 0.5% to the Human Resource Development Fund and 2% to the Social Cohesion Fund, and General Healthcare System contributions of 2.65% from the employee and 2.90% from the company, with employer contributions due by the end of the following calendar month. Whether a particular engagement is genuinely self-employment is a determination for the Social Insurance Services rather than a label you choose on the invoice — confirm it rather than assume it.
This page is for information only
Nothing on this page constitutes legal or tax advice. Tax law is subject to change. The effect of any of it on your circumstances depends on what your client and contractor agreements actually say, where the intellectual property was developed and by whom, and which country each of your customers is established in. Always seek independent professional advice before making residency, structuring, or filing decisions based on this content.
Services referred to on this page are delivered through licensed Cyprus partners — a Cyprus Bar Association registered lawyer, an ICPAC-registered accounting firm, and/or a licensed Cyprus corporate services provider, as applicable. CyPRO One coordinates the engagement and acts as your single point of contact.
Frequently Asked Questions
Who owns the code my Cyprus company writes for a client?
By default, the client. Section 11(1) of the Copyright and Related Rights Law of 1976 provides that where creation of a work is undertaken to the order of a person or organisation that is not the author's employer, under a contract for services, the copyright is deemed to have been transferred to the person or organisation that ordered the work — subject to any agreement between the parties excluding or limiting that transfer. If you intend to keep a reusable framework, a component library or a model, the contract has to say so. Note what the section does and does not require: the proviso operates "notwithstanding the provisions of subsection (5) of section 12", so the writing rule in section 12(5) — which invalidates an assignment or an exclusive licence that is not in writing — does not govern here, and an agreement excluding or limiting the transfer bites without being written. Put it in writing anyway, because an agreement you cannot evidence is one you will lose. The same default works in your favour with your own subcontractors, whose commissioned work transfers to you on exactly the same terms. Our partner law firm advises on the drafting; CyPRO One coordinates the engagement.
Can CyPRO One set up an IP Box structure for my software?
No, and we would rather say so than take the work. IP Box structuring is specialist Cyprus tax advice, and CyPRO One is a coordinator and platform rather than a licensed tax practice — you need a licensed Cyprus tax advisor engaged directly for it. What we can do is form the company through our licensed Cyprus corporate services partner, coordinate the accounting and audit through our ICPAC-registered partner, and stay as your single point of contact while a specialist you appoint looks at the intellectual-property question. For context so you can ask better questions: Article 9(1)(κ) of the Income Tax Law gives a deduction of 80% of qualifying profits from a qualifying intangible asset, the remaining 20% is taxed at the 15% corporate rate, and what qualifies is set by Regulations made by the Council of Ministers rather than by the section itself.
Is the Cyprus IP Box really a 2.5% effective rate?
It can be as low as 3%, and that is a floor rather than a rate. The mechanism has not changed: Article 9(1)(κ) of the Income Tax Law treats 80% of the qualifying profits from a qualifying intangible asset as a deduction, leaving 20% of that profit in charge. What changed is the rate applied to the remaining 20% — the 2026 reform raised corporate income tax from 12.5% to 15%, so 20% taxed at 15% gives 3% where the same arithmetic at 12.5% gave the 2.5% most articles still quote. The reason 3% is a floor is the nexus approach: the Ministry of Finance describes the relief as 80% of the net profit "as calculated in the nexus approach" derived from qualified intangible assets, so how much of your profit qualifies tracks the research and development your own business carried out. Buy the technology in or outsource its development and the qualifying fraction falls, taking the effective rate up with it. Note also that if the qualifying computation produces a loss, only 20% of that loss can be set off and carried forward under Article 13, and that a person may waive the deduction in whole or part for any tax year.
Can I claim the 20% research and development uplift as well as the IP Box?
Not on the same asset. The uplift comes from the provisos to Article 9(1)(δ) of the Income Tax Law as rewritten by article 5(α)(i) of the Income Tax (Amending) (No. 4) Law of 2025: for expenditure incurred in the years 2025 to 2030 inclusive, including capital-nature expenditure deductible under paragraph (λ), an additional deduction equal to 20% of that expenditure is granted, waivable in part or in full for each tax year. Proviso (iii) then refuses it for expenditure relating to a qualifying intangible asset for which the IP Box in paragraph (κ) has been applied in any year, including the current one. So it is a choice per asset, it carries history, and the uplift window is written to end after the 2030 year. Which side of the choice suits your numbers is a calculation for a licensed Cyprus tax advisor, not a rule of thumb.
Do I charge VAT to a client in Germany, in the UK, and in the US?
Article 10Α(2) of the VAT Law puts the place of supply of services where the customer belongs when the customer is a relevant taxable person, and where you belong otherwise. A VAT-registered business in Germany therefore takes the supply outside Cyprus VAT and accounts for it in Germany; a private consumer in Germany does not, and the treatment turns on the type of service. A business customer in the United Kingdom or the United States sits outside the EU VAT system, so a Cyprus VAT charge is generally not in point, though their own domestic rules may be. Two practical consequences: verify and keep evidence of a business customer's VAT number rather than taking it on trust, and remember that supplies to VAT-registered customers in other member states go on the monthly recapitulative statement under Article 42Γ(2). Your ICPAC-registered accounting partner confirms the treatment per contract.
What is the VIES statement and how often do I have to file it?
Monthly. Article 42Γ(2) of the VAT Law requires a taxable person who during a month has supplied goods or services to a person registered in another member state to submit a recapitulative statement to the Commissioner no later than the fifteenth day after the end of the month it relates to. It lists the customers concerned, and paragraph (γ) expressly brings in services supplied under Article 10Α where the customer is liable for the tax under Article 11 — so a consultancy that never touches physical goods still files it. Article 45Β imposes a €50 charge where the statement has not been received by the deadline, and Article 45Α a €15 charge where one is filed with omissions or inaccuracies and not corrected in time. Small amounts, but they recur monthly and they are entirely avoidable. Our ICPAC-registered accounting partner prepares and files these.
I want to move my existing product into the Cyprus company. What should I watch?
The valuation, and the evidence for it. Article 9(1)(λ) of the Income Tax Law lets capital expenditure on acquiring or developing an intangible asset be spread over its life on a reasonable basis under accepted accounting principles, to a maximum of twenty years, with assets of indefinite useful economic life spread over twenty years following the 2026 reform. The same reform added a proviso that capital expenditure on intangibles introduced into a company against an issue of share capital may not exceed their market value at the date of introduction into the business, and that no deduction is granted where that market value is not documented to the Commissioner's satisfaction. So the transfer needs a defensible, contemporaneous valuation and a clean written assignment of the underlying rights. Separately, check the chain of title before you value anything — though not for the reason people usually give. Where contractors built it under a Cyprus-law contract for services, section 11(1) already deems the copyright transferred to whoever commissioned the work, expressly notwithstanding the writing rule in section 12(5), so the familiar "nobody signed an assignment" gap does not arise. What does need checking is work commissioned under another country's law, where the default may run the other way, and any third-party or open-source components, whose own licence terms govern regardless of who paid for the integration.
Does a Cyprus company make sense if my clients are all outside the EU?
Sometimes, and the reasons are usually not the tax rate. An EU-registered entity with a VAT number clears procurement obstacles, gives you an EU-law contracting basis and access to euro payment rails, and the corporate rate is 15% from 2026. But if every client is outside the EU, the cross-border VAT machinery that occupies much of this page — the recapitulative statement, the reverse charge on EU purchases — largely falls away, and what is left is a straightforward company with the ordinary annual obligations. That means the decision rests on where the work is genuinely directed from, what your current tax office will say about the move, and whether the compliance load is worth the commercial gain. Those are questions for a licensed Cyprus tax advisor on your own facts. CyPRO One coordinates the formation and ongoing compliance; we do not give the tax opinion.
Sources
Every figure and rule on this page traces to a primary authority: the legislation, court decisions and official guidance cited below, linked so you can read the wording yourself. Check them rather than take our word for it.
Copyright in commissioned work: section 11(1) of the Copyright and Related Rights Law of 1976 (59/1976). Copyright belongs first to the author, and then the proviso — quoted here from its opening words because they are load-bearing: «Νοείται ότι, ανεξαρτήτως των διατάξεων του εδαφίου (5) του άρθρου 12, οσάκις η δημιουργία ενός έργου- (α) αναλαμβάνεται κατά παραγγελίαν προσώπου ή οργανισμού όστις δεν είναι ο εργοδότης του δημιουργού δυνάμει συμβάσεως περί παροχής υπηρεσιών ή μαθητείας ή (β) μη έχουσα ούτως αναληφθή κατά παραγγελίαν, πραγματοποιήται κατά την διάρκειαν της απασχολήσεως του δημιουργού, ως μέρος των καθηκόντων αυτού δυνάμει της περί απασχολήσεως συμβάσεως αυτού, το δικαίωμα πνευματικής ιδιοκτησίας λογίζεται ως μεταβιβασθέν εις το πρόσωπον ή τον οργανισμόν όστις παρήγγειλε το έργον ή εις τον εργοδότην του δημιουργού, επιφυλασσομένης οιασδήποτε μεταξύ των μερών συμφωνίας αποκλειούσης ή περιοριζούσης την τοιαύτην μεταβίβασιν.» — "Provided that, NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (5) OF SECTION 12, where the creation of a work (a) is undertaken to the order of a person or organisation that is not the author's employer under a contract for services or apprenticeship, or (b) not having been so commissioned, is made in the course of the author's employment as part of his duties under his contract of employment, the copyright is deemed to have been transferred to the person or organisation that ordered the work, or to the author's employer, subject to any agreement between the parties excluding or limiting such transfer." The deemed transfer therefore operates expressly notwithstanding the writing requirement in section 12(5), and the carve-out it allows requires only an agreement, not a written one.
https://www.cylaw.org/nomoi/enop/ind/1976_1_59/section-scb55a95b6-1770-8082-40d4-24ace7022d71.htmlAssignments and exclusive licences must be in writing: section 12(5) of the same Law provides that no assignment of copyright and no exclusive licence to do an act controlled by copyright is valid unless it is made or granted in writing. Section 12(1) makes copyright transmissible by assignment, by testamentary disposition or by operation of law, as movable property. Note that section 11(1) is expressly excepted from subsection (5) — so this rule governs actual assignments and exclusive licences, not the deemed transfer of commissioned work.
https://www.cylaw.org/nomoi/enop/ind/1976_1_59/section-sc53b4cc64-1ea4-5a2a-dae1-2e705653838a.htmlProtection needs no registration, computer programs are protected as literary works, and ideas are not protected: section 3 of the Copyright and Related Rights Law. Section 3(1)(α)(ii) lists "φιλολογικά έργα, συμπεριλαμβανομένων των προγραμμάτων ηλεκτρονικών υπολογιστών" — literary works including computer programs. Section 3(2) withholds protection only where the subject matter has not been reduced to material form and is not original, and its proviso adds "Η αναγνώριση προστασίας δεν εξαρτάται από την εφαρμογή κανενός πρόσθετου κριτηρίου" — recognition of protection does not depend on the application of any additional criterion. Section 3(3)(α) excludes ideas, procedures, systems, methods (including methods of operation), principles and elements expressed in the protected subject matter.
https://www.cylaw.org/nomoi/enop/ind/1976_1_59/section-sc6a01b511-d7c8-6d78-2098-0ae1b8316a15.htmlIP Box, research and development, and intangible amortisation all sit in Article 9 of the Income Tax Law 118(I)/2002 (consolidated). Paragraph (1)(κ): a deduction of 80% of the qualifying profits generated from a qualifying intangible asset, waivable in whole or part for each tax year, with any resulting loss restricted to 20% for set-off and carry-forward under Article 13, and with the Council of Ministers to issue Regulations defining qualifying intangible assets and the computation of qualifying profits. Paragraph (1)(δ): deduction for scientific research and for research and development expenditure recognised under international accounting standards, incurred by a person carrying on a business who has the economic ownership of the intangible asset arising or likely to arise from it; its further provisos grant an additional deduction of 20% for expenditure incurred in the years 2025 to 2030 inclusive and refuse that additional deduction for expenditure on a qualifying intangible asset for which paragraph (κ) has been applied in any year including the current one. A further proviso to paragraph (1)(κ) provides that where an asset could fall within both paragraph (ε) and paragraph (κ), «τότε εφαρμόζονται οι διατάξεις της παραγράφου (ε)» — the provisions of paragraph (ε) apply; paragraph (ε) covers expenditure on intangible assets as defined in the Patents Law, the Copyright Law and the Trade Marks Law. Paragraph (1)(λ): capital expenditure on acquiring or developing an intangible asset is allocated over its life on a reasonable basis under accepted accounting principles to a maximum of twenty years; intangibles with an indefinite useful economic life are allocated over twenty years; and capital expenditure on intangibles introduced into a company against an issue of share capital may not exceed their market value at the date of introduction, with no deduction where that market value is not documented to the satisfaction of the Commissioner.
https://www.cylaw.org/nomoi/enop/ind/2002_1_118/section-sc39969558-d93d-ac95-7d91-d50ba97c7239.htmlThe 2025 to 2030 research and development uplift and the intangible-asset restrictions were introduced by article 5 of the Income Tax (Amending) (No. 4) Law of 2025, N.244(I)/2025, Official Gazette No. 5070 of 31 December 2025 — paragraph (α)(i) rewriting the provisos to Article 9(1)(δ) and paragraph (γ) adding the market-value proviso to Article 9(1)(λ). Article 25 brings the Law into force on 1 January 2026, and its article 24(β) replaces the 12.5% corporate rate in the Second Schedule with 15%.
https://www.cylaw.org/nomoi/arith/2025_1_244.pdf2026 tax reform for companies: corporate income tax raised from 12.5% to 15%. Official Cyprus government tax reform page. Combined with the 80% deduction in Article 9(1)(κ), 20% of qualifying IP profit taxed at 15% gives an effective 3%.
https://www.gov.cy/taxreform/forologika-ofeli-gia-epixeiriseis-nomika-proswpa/Place of supply of services: Article 10Α(2) of the VAT Law 95(I)/2000 (consolidated) — where the recipient is a relevant taxable person, the supply is treated as made in the country where the recipient belongs; otherwise, in the country where the supplier belongs. Article 10Α(4) defines who is a relevant taxable person, including a person that is a taxable person under Article 9 of Directive 2006/112/EC or is identified for VAT in another member state, where the services are not received wholly for private purposes.
https://www.cylaw.org/nomoi/enop/ind/2000_1_95/section-sc5d2019e0-5566-13a3-abba-2cf69cf4d4b0.htmlReverse charge on services received from abroad: Article 11 of the VAT Law — where services are supplied by a person belonging in a country other than the Republic, the Law applies as if the supply were made by the recipient in the Republic in the course or furtherance of the business the recipient carries on, and the transaction is a taxable transaction. It applies where the recipient is a relevant taxable person and the place of supply is the Republic.
https://www.cylaw.org/nomoi/enop/ind/2000_1_95/section-sc1c9a9761-5628-3a36-73e0-ec838b67c8c4.htmlRecapitulative statement (VIES): Article 42Γ(2) of the VAT Law — every taxable person who during a month has supplied goods and/or services to a person registered in another member state files a recapitulative statement with the Commissioner no later than the fifteenth day after the end of the month concerned; paragraph (γ) covers services supplied under Article 10Α on which the recipient is liable for the tax under Article 11. Article 42Γ(3) requires a nil statement in a month with no such supplies where one was due for the immediately preceding month.
https://www.cylaw.org/nomoi/enop/ind/2000_1_95/section-sc8c0e4ec5-9e6a-1a28-0fd0-4a092d223176.htmlFailure to file the recapitulative statement carries a €50 charge under Article 45Β of the VAT Law.
https://www.cylaw.org/nomoi/enop/ind/2000_1_95/section-sc6b1799c4-8aad-1f95-f435-b96da0ca828d.htmlA recapitulative statement filed with omissions or inaccuracies and not corrected within the period in Article 42Γ(4) carries a €15 charge under Article 45Α of the VAT Law.
https://www.cylaw.org/nomoi/enop/ind/2000_1_95/section-sc1cade47e-f79b-bfb0-4ec1-59c3d0545f52.htmlThe IP Box relief runs through the nexus approach and applies to income from the asset rather than to revenue generally: Ministry of Finance, Tax Incentives — "Intellectual Property income: 80% of the net profit as calculated in the nexus approach derived by a qualified intangible assets in form of royalty income, embedded income and other qualified income."
https://www.gov.cy/mof/en/documents/tax-incentives/VAT registration is compulsory where taxable transactions over the preceding 12 months exceed €15,600 or will exceed that within the next 30 days.
https://www.businessincyprus.gov.cy/doing-business-in-cyprus/start-your-business/registering-for-income-tax-and-value-added-tax/Employer social insurance obligations: employee 8.8% and employer 8.8% to the Social Insurance Fund; employer additionally 1.2% Redundancy Fund, 0.5% Human Resource Development Fund, 2% Social Cohesion Fund; General Healthcare System contributions 2.65% from employees and 2.90% from employers; employer contributions due by the end of the following calendar month.
https://www.businessincyprus.gov.cy/social-insurance-registration-and-contributions/
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