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]

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?

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

https://ipbox.cy/

 

[Leo Vanguard]

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

https://ipbox.cy/

Books need to be research and developed?

 

[Marzio]

Books need to be research and developed?

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]

No expenses = no tax benefits

seems logical to me

 

[Leo Vanguard]

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

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]

I run a publishing company and incur plenty of expenses

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.

paying writers, graphic designers, proofreaders, editors, narrators, running ads, investing in software, and covering staff training, among other costs.

I guess some of those like editors could be considered a qualifying expense but you need to consult with somebody to be 100% sure.