Cyprus R&D center

[2fire]

Dear OCT members,

I am genuinely performing R&D in one of my factory in EU. Occasionally we event making projects which are co funded by EU.

I wonder if I can setup a foundation in UAE, which would setup a R&D center in Cyprus. I would hire locally engineers to perform R&D functions. Then I would use Cyprus IP BOX for collecting reasonable % from revenue from factories located in DTA countries. Eventually income will be paid as dividends to UAE foundation.

Does this make sense or I am saying nonsense?

 

[CyprusLawyer101]

It is possible to set up your R&D centre in Cyprus , but through a Cyprus company to get the benefits of the IP regime. You would also need to develop some specific product which would qualify as an IP asset for the purposes of this particular regulation.

 

[2fire]

It is possible to set up your R&D centre in Cyprus , but through a Cyprus company to get the benefits of the IP regime. You would also need to develop some specific product which would qualify as an IP asset for the purposes of this particular regulation.

Thank you for your reply.
Would it be possible to hold this CY R&D by foundation registered in UAE and find CY banking for that?

 

[CyprusLawyer101]

Thank you for your reply.
Would it be possible to hold this CY R&D by foundation registered in UAE and find CY banking for that?

There is no restriction to having a foundation as the shareholder of the CY company. With respect to banking ,its up to the banks' onboarding policy, but I do not see a specific problem with finding a bank in Cyprus to open an account for the foundation.

 

[2fire]

Am I correctly understanding that CY company doesn’t have a WHT paid to foreign companies which are not EU blacklisted.

In such way CY company pays 2.5% CIT and could pay dividends to UAE foundation with 0% WHT.

 

[CyprusLawyer101]

Am I correctly understanding that CY company doesn’t have a WHT paid to foreign companies which are not EU blacklisted.

In such way CY company pays 2.5% CIT and could pay dividends to UAE foundation with 0% WHT.

Correct