Relocate Your Video Game Company to Cyprus
Full Re-domiciliation Support
Company formation, banking, and specialized setup for video game studios completed in under 4 weeks.
Discover how much you’d save by moving to Cyprus.
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Key Benefits for Video Game Companies
How The Cyprus Video Game Tax Regime Works
Cyprus offers a game-changing tax regime for video game studios and IP-driven companies. The centrepiece is the IP Box a framework that dramatically cuts tax on income from game software, copyrights, and other qualifying intellectual property. Here’s how it breaks down:
80% of IP profits exempt
Qualifying profits from your game IP (royalties, licensing revenue, embedded software income) receive an 80% deduction. Only 20% of that income is taxable. With the standard corporate rate at 15%, this yields an effective tax rate of just 3% on IP income. Your studio keeps more of every euro earned to reinvest in development, marketing, and new titles.
Example:
Tax on EUR 1M Profit: Cyprus (3% via IP Box) vs. High-Tax Country (25%). The comparison above illustrates how Cyprus’s video game tax regime can reduce the tax bill from EUR 250k to just EUR 30k on a EUR 1 million profit, freeing up EUR 220k to reinvest in your next title.
This favourable regime makes video game tax in Cyprus one of the lowest in Europe. Even other IP-friendly jurisdictions cannot compete: the UK’s Patent Box has a 10% rate, and Luxembourg’s is 5.2%, both significantly higher than Cyprus’s effective 3%. Moreover, Cyprus’s IP Box covers a broad range of intangibles including game software, source code, game engines, and related copyrights, giving video game studios maximum flexibility regardless of their genre or platform.
Beyond the IP Box, Cyprus’s overall tax system is highly beneficial for game founders. The 15% corporate tax applies to all active business profits (already half or less of what studios pay in many Western countries). There is also no capital gains tax on disposals of qualifying intangible assets, so selling a game franchise or IP portfolio could incur 0% tax on the gain. With 60+ double tax treaties in place, your Cyprus studio avoids double taxation on cross-border income from Steam, Apple, Google, or any international publisher. In short, Cyprus’s tax regime is not just “low tax” it is a strategic tool to maximise your studio’s after-tax profits, logically and legally.
Cyprus vs. Other Jurisdictions: Why Choose Cyprus?
To put Cyprus’s advantages into perspective, here is how it stacks up against other popular locations for video game companies:
| Factor | Cyprus EU | Dubai (UAE) | Malta (EU) | UK (Non-EU) |
|---|---|---|---|---|
| Corporate Tax |
15% standard 3% on IP profits (IP Box) |
0% (tax-free in many zones; 9% introduced onshore) | 5% effective (35% nominal, via refunds) | 25% standard rate (high-tax) |
| Dividend Tax | 0% withholding on outgoing dividends (no taxes for foreign shareholders) | 0% (no personal income tax in UAE) | 0% (no dividend WHT after refund mechanism) | 0% WHT (but shareholders pay up to 38% personal tax on dividends) |
| IP / Game IP Regime | Generous IP Box: 80% exemption on qualifying IP income, including game software and copyrights | No dedicated IP Box regime | Limited; no broad IP Box | Patent Box at 10% (limited scope for game studios) |
| Banking & Compliance | Robust international banking sector; requires local substance (real office, resident directors) for smooth account opening | Reputable banks but strict due diligence (foreign owners often use international or free-zone banking solutions) | Smaller banking sector; stringent compliance checks (can be slower) | World-class banking, with strict UK AML compliance (generally stable for local firms) |
| Living Cost | Moderate Lower cost of living than Western Europe; offices and housing are affordable | High Premium cost of living (housing, schools, etc. are expensive) | Medium-High Costs higher than Cyprus (limited land, rising rents) | High Expensive, especially in London and tech hubs |
Cyprus vs. Other Jurisdictions: Why Choose Cyprus?
To put Cyprus’s advantages into perspective, here is how it stacks up against other popular locations for video game companies:
| Factor | Cyprus EU | Dubai (UAE) | Malta (EU) | UK (Non-EU) |
|---|---|---|---|---|
| Corporate Tax |
15% standard 3% on IP profits (IP Box) |
0% (tax-free in many zones; 9% introduced onshore) | 5% effective (35% nominal, via refunds) | 25% standard rate (high-tax) |
| Dividend Tax | 0% withholding on outgoing dividends (no taxes for foreign shareholders) | 0% (no personal income tax in UAE) | 0% (no dividend WHT after refund mechanism) | 0% WHT (but shareholders pay up to 38% personal tax on dividends) |
| IP / Game IP Regime | Generous IP Box: 80% exemption on qualifying IP income, including game software and copyrights | No dedicated IP Box regime | Limited; no broad IP Box | Patent Box at 10% (limited scope for game studios) |
| Banking & Compliance | Robust international banking sector; requires local substance (real office, resident directors) for smooth account opening | Reputable banks but strict due diligence (foreign owners often use international or free-zone banking solutions) | Smaller banking sector; stringent compliance checks (can be slower) | World-class banking, with strict UK AML compliance (generally stable for local firms) |
| Living Cost | Moderate Lower cost of living than Western Europe; offices and housing are affordable | High Premium cost of living (housing, schools, etc. are expensive) | Medium-High Costs higher than Cyprus (limited land, rising rents) | High Expensive, especially in London and tech hubs |
Book a free meeting with a tax advisor.
Move Your Video Game Company to Cyprus in 4 Weeks
Worried about the relocation process? We have streamlined it into a rapid 4-week timeline. Here is how we get your video game studio registered in Cyprus and fully operational, fast.
This accelerated timeline removes the fear of “how long will this take?” In just one month, your game studio can go from over-taxed and uncertain to fully established in Cyprus, banked, and ready to publish and earn globally from an EU base.
Economic Substance Made Easy
One of the biggest concerns for founders moving abroad is economic substance, i.e. having a real presence and not just a PO box. The era of “paper companies” is over, and both regulators and banks expect your company to show genuine operations in its country of registration. Cyprus requires that companies be managed and controlled from Cyprus to enjoy the tax benefits. In practice, this means a local registered office, resident director(s), and some staff or activity on the island. Do not worry, we make meeting these requirements straightforward:
THE PLAN
Physical Office Space
We provide office solutions tailored to your studio’s size, from a serviced co-working desk for an early-stage team to a private office suite for larger operations. This gives your company a legitimate Cyprus address and workspace, essential for compliance and day-to-day operations. Banks and tax authorities take note of this real footprint.
Local Directors and Staff
To establish management in Cyprus, we can appoint qualified local director(s) with genuine decision-making authority, or assist with relocating one of your own directors. We also help recruit local employees such as an office manager, QA tester, or junior developer to fulfil substance requirements while genuinely contributing to the business. Remember, up to 70% of your team can still be non-EU staff brought in from abroad.
Operational Support: Payroll and Compliance
We set up your payroll in Cyprus and register employees with Social Insurance. Running monthly payroll and paying local social insurance contributions demonstrates an active business presence. We also handle bookkeeping, accounting, and the annual statutory audit so that your Cyprus entity is not just on paper but a fully functioning game studio.
Banking Solutions for Video Game Studios
We understand that certain gaming business models are considered higher risk by banks, for example studios with in-game economies, blockchain-based assets, or gambling-adjacent mechanics. Cyprus, like many jurisdictions, has strict AML and KYC standards, and traditional banks can be cautious. Through our network, we provide banking solutions tailored specifically to the video game industry:
THE SOLUTIONS
Gaming-Friendly Banking
While some traditional banks apply caution to gaming-related companies, Cyprus is home to several Electronic Money Institutions (EMIs) and fintech banks that understand game studio business models, including studios with virtual economies, subscription models, or multi-currency revenue from global platforms. We leverage our partnerships with these providers to get your studio an operational account and IBAN quickly, ensuring you can receive payouts from Steam, Apple, Google Play, and Epic Games Store from day one.
Tier-1 Bank Introductions
For studios with straightforward profiles, we work with major banks in Cyprus and across the EU. Because we ensure your company has proper substance and documentation from the start, bank compliance teams are far more welcoming. We often secure pre-approval from a bank’s compliance department before your company is even incorporated, so that account opening is already in progress by Week 4. We prepare all required due diligence files, business plans, and references upfront.
Transparent Timeline and Expectations
We will be honest with you: studios with complex models such as NFT integrations, play-to-earn mechanics, or regulated gambling elements will face additional compliance scrutiny. But with our guidance, you will know exactly what documents and policies to have in place. Our compliance team performs a mock review of your application before any bank sees it, flagging issues proactively. This dramatically improves approval rates and eliminates surprises.
Relocate Your Team: Live and Work in the Mediterranean
Relocating a company is not only about numbers. It is also about quality of life for you and your team. Cyprus offers an incredible lifestyle for game founders and developers that makes the move genuinely rewarding on a personal level. Here is what life looks like for your studio in Cyprus:
THE PLAN
300 Days of Sunshine
Cyprus boasts over 300 sunny days a year and a warm Mediterranean climate. Imagine your development team enjoying beach weekends or outdoor meetups nearly year-round. The quality of life contributes to a healthier work-life balance, a meaningful factor when recruiting and retaining senior creative talent.
English-Speaking, International Environment
Business in Cyprus is conducted in English and almost everyone speaks it. You will find it easy to integrate professionally and socially. International schools teaching in English, Russian, French, and other languages are available for employees with families, reflecting a diverse and welcoming expat community.
Safe and Family-Friendly
Cyprus consistently ranks among the safest countries in Europe, with low crime rates and family-oriented communities. Modern private hospitals and a public healthcare system make it a practical choice for families relocating. It is the kind of place where your team feels comfortable settling long-term, not just passing through.
Cost of Living and Amenities
You get a full Mediterranean lifestyle at a fraction of the cost of London, Tel Aviv, or Berlin. Housing, whether renting or buying, is reasonably priced. A sea-view apartment or suburban villa with a pool costs significantly less than equivalent tech hub accommodation. Daily expenses, from dining to transport, are lower too, meaning your team’s salaries stretch much further in Cyprus.
Digital Nomad and Remote Work Haven
Cyprus actively welcomes remote workers. The Digital Nomad Visa allows non-EU remote professionals to live in Cyprus while working for overseas companies. For EU nationals on your team, a simple Yellow Slip registration is all that is needed to live and work freely on the island. Your distributed studio can be physically based in Cyprus while continuing to work with partners and publishers worldwide.
Success Story: How One Video Game Studio Saved Over EUR 250K in Year 1
To see these benefits in action, consider a recent client of ours (name confidential for privacy): a mobile game studio that relocated from the United Kingdom to Cyprus and transformed their financial position in under five weeks.
Background
Our client was a 14-person mobile game studio headquartered in London, best known for their hit puzzle franchise with over 8 million downloads. Despite strong revenues, the founders were paying 25% corporate tax on approximately EUR 1.5M in annual IP profits, resulting in a tax bill of around EUR 375K per year.
With several non-EU developers on the team and a new title in development requiring significant reinvestment, the founders were looking for a legitimate EU jurisdiction that would let them keep more of what they earned without sacrificing stability or access to European publishers and platforms.
The Move
KTC redomiciled the studio to Cyprus in 4 weeks. The process included:
- Redomiciliation of the UK entity as a continuing Cyprus company, preserving all existing contracts and IP ownership history
- IP Box structuring and nexus documentation for the game software and franchise copyrights
- Limassol office setup and appointment of a local Cyprus director with genuine management authority
- Work permits secured for two senior non-EU developers relocating to Cyprus under the Foreign Interest Company programme
- Banking onboarded with a Tier-1 Cyprus bank and an EU EMI for immediate IBAN access
Year 1 Results
On EUR 1.5M in qualifying IP profits, the studio paid approximately EUR 45K in corporate tax under the Cyprus IP Box regime, compared to EUR 375K in the UK. The effective tax rate dropped from 25% to approximately 3%, generating a first-year saving of over EUR 250K.
The founders also became Cyprus tax residents with non-domicile status, paying 0% personal tax on dividends for up to 17 years. The EUR 250K saved in year one was reinvested entirely into the development of their next title, which launched 14 months later and reached the top 10 puzzle games chart in 18 European markets.
Co-Founder, UK-based mobile game studio (name and company withheld for confidentiality)
“We were losing a quarter of our profits to tax every single year. KTC moved us to Cyprus in less than a month. The process was smooth, the team handled everything, and the savings in year one alone funded our entire next game. We wish we had done this three years earlier.”
Common Questions from Video Game Company Founders
We understand that you may have many questions before making a big move. Below we address the most common questions and concerns that game studio founders raise about relocating to Cyprus:
Is the Cyprus IP Box regime still applicable in 2026?
Yes. The IP Box remains fully in place under the OECD nexus approach. The main change is that the standard corporate tax rate increased to 15% in line with the global minimum tax, which adjusts the effective IP Box rate to approximately 3% on qualifying IP profits. The regime is intact and continues to be one of the most competitive in Europe for software and game IP income.
Does my game software qualify for the IP Box?
In most cases, yes. Game software, source code, game engines, and related copyrights qualify as eligible intangible assets. The key requirement is that qualifying income must be linked to qualifying R&D expenditure through the OECD nexus calculation. KTC prepares the full analysis and documentation to confirm eligibility and support the exemption under any tax authority review.
Do I need to move to Cyprus personally?
No. The IP Box is a corporate-level benefit available to the Cyprus company itself. You can remain abroad while we establish Cyprus-based management and substance. However, if you choose to become a Cyprus tax resident yourself, you may also benefit from non-domicile status, which exempts you from personal tax on dividends and interest for up to 17 years.
Redomiciliation vs. new company: what is the difference?
Redomiciliation transfers your existing company’s legal seat to Cyprus as a continuing entity, preserving its history, contracts, and IP ownership records. A new incorporation creates a fresh Cyprus company, after which assets and IP are migrated. The best approach depends on your current jurisdiction’s rules and your specific corporate structure. KTC advises on this during the initial assessment.
How much substance do we need in Cyprus?
At minimum: a registered office, at least one Cyprus-resident director with genuine authority, and evidence of real business activity such as board meetings, local accounting, and some staff or operational presence. KTC provides all of this as part of the relocation package. Substance is not a burden; it is what makes your structure credible to banks, regulators, and business partners.
Is Cyprus really worth it compared to UK, Israel, Dubai, or Malta?
For video game studios with significant IP income, yes. Cyprus offers the only EU-based IP Box that brings the effective rate down to approximately 3% on qualifying income, combined with 0% withholding on dividends, a low cost of living, English as the business language, and a straightforward setup process. No competing jurisdiction offers the same combination of tax efficiency, EU legitimacy, and quality of life.
Ready to Relocate Your Video Game Company to Cyprus?
Relocating to Cyprus could be the smartest move you make for your tech company lower taxes, greater freedom, and a better lifestyle await. If you’re excited by the possibilities, now is the time to take action.
Book a Free 30-Minute Strategy Call Schedule a call with our experts to get a personalized assessment. We’ll calculate your potential tax savings, discuss your specific industry (be it Crypto, SaaS, E-commerce, Gaming, or otherwise), and chart a clear roadmap for your move. This consultation is no-obligation and packed with value you’ll finish with a clear understanding of the steps and benefits.
Optimize your tech business today. Cyprus offers the tax efficiency of an offshore haven within the legitimacy of the EU. Whether you’re a blockchain startup seeking a friendly regulatory environment, a software company aiming to maximize profits, or a digital nomad founder looking for a base, Cyprus has a solution for you. Contact us now to register your technology company in Cyprus, and let us handle the heavy lifting of relocation, so you can focus on innovation and growth.
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