Question 1

Does my SaaS code actually qualify for the Cyprus IP Box?

Accepted Answer

Yes, in almost every case. The 2026 IP Box covers patents, copyrights (including computer software), utility models and plant-breeders' rights. SaaS source code is copyright-protected from the moment it is written, so it is a qualifying asset. What matters in practice is the nexus ratio: the share of qualifying R&D done by the Cyprus Ltd or by unrelated subcontractors versus related-party R&D. We build the nexus tracking from day one so the claim is defensible.

Question 2

What is the actual effective tax rate after the IP Box?

Accepted Answer

80% of qualifying-IP profit is deducted before the 15% rate is applied, so the math is: 15% × 20% = 3%. On €1m of qualifying SaaS income, that is €30,000 of corporate tax. Non-qualifying income (e.g. consulting, hardware resale, hosting margin if not bundled) is taxed at the headline 15%.

Question 3

Can I keep my US Delaware C-Corp and put a Cyprus Ltd underneath it?

Accepted Answer

Sometimes yes — but only if the US C-Corp has a real US business reason to exist (e.g. you've raised from a US lead and the SAFE / SPA references it). If the C-Corp is just "because Y Combinator", we usually recommend collapsing into a Cyprus Ltd structure before the Series A, otherwise the IP Box claim is much harder to defend. We've handled both patterns and will tell you on the first call which fits.

Question 4

How does this work with US/UK investors investing in my Cyprus Ltd?

Accepted Answer

Cyprus Ltd shares can be issued via SAFEs and convertible notes drafted on Cyprus law (or a US/UK side-letter). Most UK and EU VCs are comfortable with a Cyprus Ltd. US VCs sometimes still want a Delaware C-Corp on top — in which case we add a Delaware HoldCo with the Cyprus Ltd as the operating sub, and migrate IP carefully. Both patterns work; the choice is investor-driven.

Question 5

Do I have to physically move to Cyprus?

Accepted Answer

If you want the 0% non-dom personal tax on dividends, yes — you need to be a Cyprus tax resident. The 60-day rule lets you keep travelling: 60+ days in Cyprus, no more than 183 days in any other single country, and a Cyprus home plus a Cyprus directorship/business. Under the 2026 reform the old "not tax resident anywhere else" condition was repealed, making the 60-day rule materially easier.

Question 6

What happens to my IP / codebase when I migrate it?

Accepted Answer

Pre-existing IP (you and any prior contributors) is assigned to the new Cyprus Ltd via written, dated assignment deeds &mdash; we draft these. The transfer can be at book value (often €0 for early-stage code) or at arm's-length value if the IP is already commercial; we advise based on your specific facts and the home-country exit-tax position. Skipping the deeds is the single most common acquisition-blocker we see.

Question 7

What about the Pillar 2 15% global minimum tax — does it bite?

Accepted Answer

Pillar 2 only applies to MNE groups with consolidated revenue above €750m. Effectively no SaaS founder is in scope until very late stage. If and when you cross that threshold, the Cyprus 15% headline already meets the minimum &mdash; and an effective 3% via IP Box is preserved through the QDMTT mechanism for in-scope entities. We model this on a case-by-case basis at scale.

Question 8

Can I hire engineers in Cyprus or do I have to keep them remote?

Accepted Answer

Both work. Cyprus has a strong English-speaking tech labour market in Limassol and Nicosia (legacy from forex / fintech / shipping). Senior backend engineers cost roughly 60% of Berlin / Amsterdam. Hiring senior expats from the EU into Cyprus also unlocks the 50% expat exemption (50% of salary exempt from PIT for 17 years if base salary >€55k). Remote teams under a contractor / EOR setup also work — we structure both.

Question 9

Do I need a Cyprus director, or can I be the only director?

Accepted Answer

You can be the only director — but for tax-residency defence (place-of-effective-management) we usually recommend at least one Cyprus-resident director, especially for the first 1–2 years while you're not yet on the island full-time. Nominee director services exist but the better long-term answer is a real second person you trust.

Question 10

How much does it actually cost to run a Cyprus SaaS Ltd per year?

Accepted Answer

Realistic full-cost picture for a single-founder SaaS at €0.5–€1m ARR: registered office + secretarial €600–€900/yr; bookkeeping €350–€600/month; statutory audit €1,500–€3,000/yr; corporate tax return + IP Box claim €1,500–€2,500/yr; legal retainer €0–€500/month if needed. Realistic floor: ~€8–€12k/year all-in, well below the tax saved.

Question 11

What's the 17 vs 27-year non-dom story exactly?

Accepted Answer

Standard non-dom is 17 years from the year you first become Cyprus tax resident. The 2026 reform added two consecutive 5-year extensions at €250,000 each (paid in advance, per block) — taking the window to a maximum of 27 years. Cypriot deemed-domiciled residents can alternatively elect a flat €50,000/year contribution for 5 years in lieu of the variable SDC. We model which election makes sense for your dividend trajectory.

Question 12

Can I sell the SaaS later without paying Cyprus capital gains?

Accepted Answer

Yes — share sales of non-real-estate companies are structurally exempt from Cyprus capital gains tax. So when an acquirer buys 100% of your Cyprus Ltd shares, the gain on the founder's hands is 0% in Cyprus. Your home country may still tax you (depending on whether you've severed residency cleanly) — that's where pre-exit planning matters.

Cyprus for SaaS founders — 15% corporate, ~3% on qualifying IP, 0% on your dividends

Worked example: €600,000 ARR vertical-SaaS founder, paying themselves €200k/yr

Three things Cyprus does for saas founders that nowhere else in the EU does at once.

15% corporate tax on operating profit

English common law, in English

Stripe, banking, accounting in 30 days

Three steps from decision to operational.

Free 30-min strategy call

Cyprus Ltd incorporated

Banking + Stripe + payroll live

Why Cyprus over Malta, Estonia, the UAE and Portugal — for saas founders.

The full scope, fixed-fee, signed before any payment.

Cyprus operating company set-up

IP Box readiness & qualifying-asset audit

Founder relocation + non-dom registration

ESOP / vesting / SAFE drafting

Cyprus structuring for saas founders, done properly.

A few questions we hear most

Deeper guides for saas founders