The taxation system for intellectual property royalties in Cyprus has changed as a result of the recommendations of the Action 5 report of the Organization for Economic Co-operation and Development (OECD), as well as the conclusions of the Ecofin Council, published on 8 December 2015. The legislation has been amended to limit the number of companies that can benefit from the research and development (R&D) exemption, but the tax rate in Cyprus is still one of the most favorable in the EU for foreign companies wishing to license the use of IP in Cyprus. -resident company (intermediary), where this right is then sublicensed to the end user. In general, the effective tax on intellectual property royalty income should be less than 2.5%. https://www.confiduss.com/en/i....nfo/blog/article/top
