Special Modes of Taxation in Cyprus
Cyprus Intellectual property rights and the like
The gross income arising from intellectual property rights, other exploitation rights, compensations or other similar income arising from sources within the Republic, of a person who is not resident in Cyprus, is subject to withholding tax at a rate of 10%. Royalties received by a connected company registered in a European Union Member State are exempt from tax but subject to conditions. Rights granted for use outside Cyprus are not subject to any withholding tax.
Film royalties
The gross income derived by a non-resident person in respect of royalties arising from film projection in Cyprus is subject to withholding tax at a rate of 5%. Royalties received by a connected company registered in a European Union Member State are exempt from tax but subject to conditions.
Profits of professionals, entertainers etc
The gross income derived by an individual not resident in Cyprus from the exercise in Cyprus of any profession or vocation, the remuneration of public entertainers not resident in the Republic, and the gross receipts of any theatrical or musical or other group of public entertainers, including football clubs and other athletic missions from abroad, derived from performances in Cyprus is subject to a 10% withholding tax.
