Cyprus IP Box Chaos: Does My IP Qualify Or Not?!

[Leo Vanguard]

Hey all,

I'm planning to move to Cyprus and live there full-time. I also qualify for non-dom status.

That said, I'm stuck in a bit of confusion about the IP Box regime and need some clarity:

If my books are sold on Amazon.com (with all sales handled by Amazon USA) and I only receive the royalties, do these royalties qualify for the Cyprus IP Box regime? I've heard conflicting opinions from various tax advisors, and I'd really like to get a definitive answer.

Also, I want to connect with the absolute best advisors who are experts in the IP Box regime.

If you've worked with someone knowledgeable and reliable, please share their contact info so I can reach out.

Appreciate the help!

Cheers,

 

[Marzio]

Leo Vanguard said:
If my books are sold on Amazon.com (with all sales handled by Amazon USA) and I only receive the royalties, do these royalties qualify for the Cyprus IP Box regime?
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Of course not since you don't have any R&D costs

https://ipbox.cy/

 

[Leo Vanguard]

Marzio said:
Of course not since you don't have any R&D costs

https://ipbox.cy/
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Books need to be research and developed?

 

[Marzio]

Leo Vanguard said:
Books need to be research and developed?
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To qualify for the benefits of the regime, there needs to be a direct link between the qualifying income and the own qualifying expenses contributing to that income.

No expenses = no tax benefits

 

[dany]

Marzio said:
No expenses = no tax benefits
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seems logical to me

 

[Leo Vanguard]

Marzio said:
To qualify for the benefits of the regime, there needs to be a direct link between the qualifying income and the own qualifying expenses contributing to that income.

No expenses = no tax benefit
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Interesting.

I run a publishing company and incur plenty of expenses””paying writers, graphic designers, proofreaders, editors, narrators, running ads, investing in software, and covering staff training, among other costs.

If thats the only reason, I'm curious if that would give me a strong case to qualify.

Could literally show my ads dashboard and the exact sales that where attributed to the book from spending money on the ad.

 

[Marzio]

Leo Vanguard said:
I run a publishing company and incur plenty of expenses
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Keyword here is not expenses but "qualifying expenses"

Ad costs will not be considered a qualifying expense because that expense is not resulted in an IP being developed, it's just a direct sales channel.

Leo Vanguard said:
paying writers, graphic designers, proofreaders, editors, narrators, running ads, investing in software, and covering staff training, among other costs.
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I guess some of those like editors could be considered a qualifying expense but you need to consult with somebody to be 100% sure.

 

[A Rebours]

Marzio said:
Keyword here is not expenses but "qualifying expenses"

Ad costs will not be considered a qualifying expense because that expense is not resulted in an IP being developed, it's just a direct sales channel.



I guess some of those like editors could be considered a qualifying expense but you need to consult with somebody to be 100% sure.
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Marzio, what about software development and publishing for software that I mostly develop and publish myself? I am a developer and publisher with my own apps.

 

[Marzio]

A Rebours said:
Marzio, what about software development and publishing for software that I mostly develop and publish myself? I am a developer and publisher with my own apps.
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This will most likely qualify as IP developed internally but to be sure you have to consult with somebody on the ground.