BUSINESS AS USUAL?

Incorporation is straightforward. Getting the structure right takes more thought. The ownership, activities and day-to-day management of the business should be clear before the company is formed.

Once established, there are practical matters to address: tax registration, VAT and VIES where relevant, beneficial ownership filings, accounting records, statutory registers and annual reporting. Banking arrangements are often worth considering at an early stage.

For businesses operating across borders, the Cyprus company also needs to fit within the wider group and the requirements of the other countries involved.

For individuals, the 183-day rule is familiar, but the 60-day route comes with additional conditions. Days spent in Cyprus are only part of the picture; employment or business ties, a home in Cyprus and connections elsewhere also matter.

For companies, the analysis is different. Where decisions are taken, who exercises management and how the business operates in practice can be as important as its place of incorporation.

International connections can complicate the position. Residence should be considered in light of the actual circumstances and, where relevant, the applicable tax treaty.

An IP holding company should do more than appear on a licence agreement. The people developing, managing and protecting the intellectual property, and the risks they take, are central to understanding the arrangement.

Ownership, licensing terms, related-party charges and the commercial activities behind them need to be considered together. Good documentation matters, particularly where more than one jurisdiction is involved.

The Cyprus IP Box regime offers tax provisions relevant to certain qualifying intangible assets, but their application depends on the assets, expenditure and facts of each case. A structure should be commercially sound before any potential tax benefit is assessed.