The EU 🇪🇺 has a legal 3% tax loophole for SaaS founders. No need to go to Dubai. No “Offshore company” either. It's called the Cyprus IP Box Regime & it's an EU-approved tax incentive. Most software entrepreneurs have never even heard about it. But Cyprus has quietly attracted thousands of tech companies, including names like Semrush, Wargaming & GDEV/Nexters. The last company is publicly traded on NASDAQ & even discloses in their SEC filings that they apply the Cyprus IP Box regime. But your business can take advantage of the IP Box too. If your company has or develops an Intellectual property (IP), then 80% of your qualifying profits can be tax-exempt in Cyprus. Cyprus corporate tax is 15%, but under the IP Box you're only taxed on 20% of the profits. So 20% × 15% = 3% effective corporate tax. Example: Your SaaS business generates 1.000.000€ in qualifying profits: > 1.000.000€ profit > 800.000€ IP Box deduction > 200.000€ taxable > 30.000€ corporate tax = 970.000€ left, after tax. Insane. But it gets even more interesting. If you personally move to Cyprus, we will apply for your Non-Dom Status where your dividends are fully tax-exempt as well. So you can distribute the remaining 970.000€ as a dividend to yourself at a tax rate of 0%. There is only one additional surcharge for the EU health card. It’s 2.65%, capped at 180.000€. Meaning, even if you receive more than 180.000€ in dividend, the maximum you’ll pay is 4.770€ per year. Almost 5k€. On nearly 1M€. Horrible. So from 1.000.000€ in profits, 30.000€ went to corporate tax & 4.770€ went to healthcare. That’s less than 3.5% in total tax for you as an entrepreneur. > While living in the EU > With 320+ sunny days per year > Growing entrepreneur community > Cleanest sea waters in Europe > Relaxed lifestyle > Low crime Cyprus 🇨🇾 might be one of the best places in Europe for SaaS founders, indie hackers, app developers & software entrepreneurs. And I thought X is probably the best place to share this as many of our clients are on here as well. – at Cyprus