1. United Kingdom

The UK has long maintained its status as a key jurisdiction for venture investments. For funds, particularly English-speaking ones, it remains a familiar and convenient choice. English law, predictable SAFE (Simple Agreement for Future Equity) and SHA (Shareholders’ Agreement) terms, and a straightforward process for transferring IP rights from founders to the company provide investors with a sense of stability and reliability.

From a tax perspective, the main advantage is the Patent Box regime, which allows the corporate tax rate on profits derived from IP to be reduced to 10%. To qualify, R&D (Research and Development) must be conducted in the UK, and proper accounting must be maintained.

A notable nuance after Brexit is that UK patents and trademarks no longer automatically cover the EU. Companies now often need to register them in both jurisdictions, increasing administrative costs. In 2024, prominent innovator James Dyson publicly urged the government to expand Patent Box benefits amid rising tax rates, though no significant changes have yet occurred.

Overall, the UK maintains its image as a stable and predictable jurisdiction for business development. The combination of clear law, transparent tax rules, and a convenient IP regime creates an environment that investors find reassuring.
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2. Cyprus

Cyprus offers one of the most competitive IP tax regimes in Europe. Thanks to the IP Box, the effective tax rate on income from licenses, software, or patents can be as low as 2.5%, making it especially attractive for companies with IP-centric business models.

However, to access these benefits, the company must demonstrate substance in Cyprus. This means:

• Appointing a Cyprus-resident director;

• Having a local company secretary;

• Maintaining actual business operations, such as an office, staff, or key business processes on the island.

Such a structure appears credible to both investors and regulators, demonstrating that the company not only enjoys tax benefits but is genuinely integrated into Cyprus’s legal and business environment.

3. Ireland

Ireland is traditionally chosen by global tech companies — Google, Apple, Meta — for holding software, code, and trademark rights. It combines an English-speaking environment, EU membership, and strong tax incentives.

A key advantage is the IP Box regime, which reduces the tax on profits from IP use to 6.25%. Additionally, the R&D tax credit allows companies to reclaim up to 25% of research and development expenses. Both incentives require actual presence in the country — conducting R&D or managing assets directly from Ireland.

Dublin has developed a robust startup ecosystem. For instance, Dogpatch Labs manages the national NDRC accelerator and has supported projects such as Intercom, international spin-offs, and startups that raised capital via SAFE agreements. This infrastructure is well-known to venture funds and international investors.

However, Ireland also presents challenges. Legal and consultancy fees are among the highest in Europe, and the 23% VAT requires careful planning for SaaS companies and those working with digital products.

Nevertheless, Ireland remains one of the most attractive jurisdictions for globally ambitious businesses. Proper structuring allows combining IP Box benefits and R&D tax credits with access to an EU investor-friendly environment.

When choosing a legal base for a company managing intellectual property, it is crucial to carefully consider all local rules and requirements, including tax conditions, legal formalities for IP registration, and substance requirements. Proper legal structuring — verified IP transfer, licensing agreements, and corporate agreements — builds investor trust and reduces business risks. Having a resident director, office, staff, or operational control in the jurisdiction demonstrates real presence and integration into the local environment.

Documentary transparency, verified R&D, and compliance with local rules transform intellectual property from a formality into a tangible business asset, increasing company value and simplifying investment attraction.

The UK offers stability and a familiar legal framework, Cyprus provides minimal tax rates with actual presence, and Ireland combines tax incentives with a strong EU ecosystem. Other jurisdictions, such as the Netherlands, Luxembourg, Belgium, and Malta, also feature IP Box regimes, making them attractive for storing and managing intellectual property.

Transparent corporate structures and compliance with local requirements strengthen investor confidence, reduce legal risks, and lay the foundation for sustainable business growth. A well-considered choice of jurisdiction and proper IP structuring turn intellectual property into a powerful tool for company growth.