2.5% tax via Cyprus IP box for physical products' utility model.

[ads11]

Hey guys, is there anyone who has experience with the Cyprus IP box regime?

I was reading that a qualifying IP can also be a utility model, basically, if you‌ developed a "unique" physical product that has some improvements you can register it as a‍ utility model.

Here's the definition from the European Commission website Utility models:

This is another useful description from the WIPO website Utility models:

This means that if your︆ product qualifies for the utility model protection you are allowed to use the Cyprus IP︇ box regime using a holding company.

The other alternative is a patent, this would allow︈ longer protection, thus a longer tax optimization strategy the downside is that it's more complicated.︉

What do you think about this strategy? Am I missing something?

 

[koohl]

Wonder if @CyprusLawyer101 or @CyprusBusiness can help. i'm in a situation where I would need‌ more information about the IP rights in Cyprus in an particular case.

 

[kkein]

If you have a patent you definitely qualify. Something else new that has not︂ been protected in any way might be difficult to defend when applying for the tax︃ rebate (talking about physical products).
With software it's different, as long as you sell the︄ software and not disclose the source code, or have a restrictive open source license that︅ does not allow others to sell or modify your software.