Cyprus

At critical stages of growth, businesses look outward for capital, to scale operations, enter new markets, strengthen infrastructure or remain competitive. In those moments, management’s attention usually turns to financial performance, tangible assets and historical revenue.  Intellectual Property is increasingly recognized as a significant driver of enterprise value, although its strategic importance is not always fully reflected in corporate planning. The knowledge, innovation, brand identity and proprietary systems developed over time frequently represent a substantial share of a company’s real worth. When properly identified, protected and appropriately structured, these intangible assets may enhance valuation, strengthen negotiating leverage, support financing and generate recurring licensing income.  Without active management, IP assets may remain underutilized, leading to potentially exposing the organisation to risk, and failing to generate commercial return. Many businesses are not entirely certain what intellectual property they own, whether ownership is properly secured, or how rights in intellectual property can be commercially leveraged. While financial statements accurately reflect tangible assets like equipment and inventory, intellectual property remains significantly underrepresented, despite often constituting the largest component of an enterprise’s value. As a result, companies may enter investor discussions, mergers or financing negotiations without fully reflecting the strength of their intangible asset base. Intellectual property is not merely a legal safeguard. When managed strategically, it becomes a financial instrument. Registered and Unregistered Rights: The Visible and the Hidden Intellectual property generally falls into two broad categories: registered rights and unregistered rights. Registered rights include patents, trademarks and industrial designs. These are formally recorded and grant defined exclusivity. A patent can secure long-term control over commercially significant technology. A trademark transforms products and services into protected brands capable of commanding loyalty and premium pricing. A registered industrial design safeguards the visual features that influence consumer choice. These rights are often central in due diligence processes and may influence valuation discussions. In practice, some businesses may overlook patentable developments, delay brand protection in expansion markets or record registered rights at historic filing cost rather than at figures reflecting true commercial impact. Unregistered rights are less visible and often more underestimated. Copyrights arise automatically in creative content, such as software, databases, training materials and internal systems. Trade secrets protect confidential know-how, manufacturing processes, pricing strategies, customer intelligence and proprietary methodologies, provided appropriate safeguards are in place. These assets do not appear in public registers, but in many organisations, they represent the core of profitability and competitive advantage. The key consideration is often not whether intellectual property exists, but whether it has been properly identified, secured and aligned with the company’s growth strategy. Intellectual Property as a Strategic Growth Tool Well-managed intellectual property behaves differently from most tangible assets. Technology, brands and proprietary know-how can be appreciated as market recognition deepens and exclusivity strengthens. Strong portfolios can support higher valuations, improve investor confidence. Besides that, they reinforce defensibility in mergers and acquisitions and create structured licensing revenue. In certain circumstances, they may also support financing arrangements. Where intellectual property is not clearly structured, companies struggle to demonstrate defensibility and scalability. During transactions, this can translate into reduced purchase price or increased scrutiny. In financing contexts, assets that could strengthen the balance sheet may not be fully reflected. Increasingly, intellectual property is regarded not solely as a legal function, but as a board-level consideration intersecting finance, tax planning, risk management and corporate strategy. In this context, the impact of overlooking intellectual property is often measurable, particularly in transactional or financing environments. Cyprus as a Strategic Platform For businesses operating in Cyprus, the jurisdiction offers a commercially attractive environment for holding and exploiting intellectual property. Beyond robust legal protection aligned with European standards, Cyprus provides a competitive IP Box regime under which qualifying intellectual property income may benefit from a significantly reduced effective tax rate, subject to applicable conditions. For companies generating returns from patented technology or proprietary software, this can translate into meaningful, retained earnings, available for reinvestment and expansion. As an EU member state, Cyprus also provides access to European protection systems and international registration mechanisms, facilitating expansion into multiple markets. Combined with an extensive double tax treaty network and a common law system, Cyprus offers a framework that is both internationally recognised and administratively predictable. For internationally active businesses, the jurisdictional location of intellectual property may also have implications for cross-border tax treatment and regulatory coordination. These advantages are most effective when intellectual property is structured and integrated within broader corporate and tax governance frameworks. From Protection to Positioning Most businesses have never conducted a structured review of their intellectual property portfolio. They may not know what can be registered, what already exists automatically, whether ownership has been properly assigned, or whether confidential assets are adequately protected. Without clarity, intellectual property may remain underleveraged. With clarity, it can become a more central component of corporate strategy. Periodic evaluation of intellectual property assets is increasingly viewed as part of sound corporate governance and risk management practice. When intellectual property is aligned with commercial objectives, it may strengthen balance sheets, influence transaction outcomes and enhance investor perception. It shifts from being a legal background concept to a driver of enterprise growth. Intellectual property is not a formality created by paperwork. It is the accumulated result of innovation, experience and market presence. The difference between simply owning intellectual property and strategically managing it may influence valuation, financing capacity, long-term growth and competitiveness. For many businesses, this distinction has not been systematically assessed. In an increasingly innovation-driven environment, periodic evaluation of intellectual property assets forms part of prudent corporate governance. In some cases, organizations may discover that the information, data, systems and brands underpinning their operations represent value comparable to, or exceeding, traditional tangible assets such as land or gold. Co authors: Ramona Livera –  Senior Associate Kyveli Antoniou – Associate Anastasios Kostekoglou – Lawyer Trainee  

Elias Neocleous & Co LLC acted as Cyprus legal counsel in connection with the successful completion of the USD 75 million private placement and admission to trading of the shares of Pelagic Credit Plc on Euronext Growth Oslo, one of the world’s leading capital markets for shipping and maritime-related companies. The company announced that the first day of trading of its shares on Euronext Growth Oslo took place on 9 March 2026. The transaction involved a private placement to international institutional and industrial investors raising gross proceeds of approximately NOK 728 million (approximately USD 48 million) through the issuance of new shares. Following completion of the offering, Pelagic Credit Plc has a post-money equity capitalisation of approximately USD 75 million. Pelagic Credit Plc is a Cyprus-incorporated maritime leasing and ship owning platform providing asset-backed financing solutions to established shipowners through long-term bareboat charter structures designed to generate stable and predictable cash flows. The platform currently owns vessels employed under multi-year charter arrangements and is evaluating a pipeline of additional acquisitions as part of its fleet expansion strategy. The development of investment platforms such as Pelagic Credit reflects the increasing intersection between the shipping and investment funds sectors in Cyprus. The combination of Cyprus’s established position as a global shipping hub and the rapid growth of its funds industry continues to create attractive opportunities for maritime investment platforms and international investors, further reinforcing the island’s role as a strategic base for international shipping and maritime investment structures. The listing further reinforces Euronext Growth Oslo’s position as a leading international capital markets venue for shipping and maritime investment platforms, attracting global shipowners, maritime financiers and institutional investors. Clarksons Securities AS, Fearnley Securities AS and Arctic Securities acted as Joint Global Coordinators and Joint Bookrunners in connection with the private placement and the listing. Advokatfirmaet BAHR AS acted as Norwegian legal counsel to the company. Acting as Cyprus legal counsel, Elias Neocleous & Co LLC advised on all Cyprus law aspects of the transaction, working alongside international advisers and financial institutions as part of a complex multi-jurisdictional capital markets transaction. This transaction further highlights the firm’s leading role in cross-border capital markets, maritime finance and international investment structures involving Cyprus companies, particularly in connection with listings and financing transactions in the global shipping sector.   Elias Neocleous, Managing Partner of Elias Neocleous & Co LLC, commented: “We are delighted to have advised on this significant international capital markets transaction supporting the successful listing of Pelagic Credit Plc on Euronext Growth Oslo. The transaction demonstrates the continued relevance of Cyprus structures in sophisticated maritime and capital markets transactions and reflects the importance of the Oslo market as one of the world’s premier financial centres for the shipping industry. We congratulate Pelagic Credit and all parties involved on this important milestone.” Deal Team The Elias Neocleous & Co LLC team advising on the transaction included: Elias Neocleous – Managing Partner Demetris Roti – Partner Konstantinos Michael – Senior Associate Norwegian legal counsel to the company was Advokatfirmaet BAHR AS, with the team led by partner Robin Bakken.

Elias Neocleous & Co LLC is proud to participate as a Silver Sponsor of the Cyprus EMEA Healthspan Summit 2026, a landmark regional forum dedicated to innovation in longevity, healthcare, biotechnology and the future of healthier living. The summit will take place on 27–28 April 2026 at the Parklane, a Luxury Collection Resort & Spa, Limassol, under the auspices of H.E. Nikos Christodoulides, President of the Republic of Cyprus. Our participation reflects the firm’s longstanding Corporate Social Responsibility commitment to supporting initiatives that promote innovation, scientific progress, and meaningful collaboration across disciplines. It also aligns with our broader view that the legal profession has an important role to play in helping societies and markets respond responsibly to transformational change. At the same time, as an organisation, we place particular importance on the well-being of our people, recognising that a healthy, supportive and balanced working environment is fundamental to professional excellence and long-term success. Held under the theme “Innovating Life: Shaping the Future of Longevity”, the summit marks the inaugural Cyprus edition of a platform connected with the St. Moritz Longevity Forum and is designed to bring together leading voices from science, biotechnology, investment and policymaking across the EMEA region and beyond. The programme highlights the growing importance of health span research, AI integration, investment infrastructure, ethical frameworks, and policy dialogue in shaping the future of longer, healthier lives. The official agenda makes clear that the summit is not only about scientific breakthroughs, but also about the wider frameworks needed to support innovation responsibly, including regulation, implementation, access, investment and governance. These are areas in which legal expertise is essential. As lawyers, we see first-hand how emerging sectors develop most sustainably when innovation is accompanied by clear legal structures, sound regulation, strong institutions, and respect for ethical standards. For that reason, our support for the Cyprus EMEA Health span Summit is especially meaningful. It reflects our belief that legal advisers should contribute not only to business activity, but also to the broader conditions that allow innovation-driven sectors to grow with confidence, integrity and long-term sustainability. In supporting this initiative, we are pleased to stand behind a forum that encourages dialogue between science, business, investment, and public policy at a particularly important moment for the region. Elias Neocleous & Co LLC remains committed to supporting forward-looking initiatives that strengthen Cyprus’s role as a centre for international business, innovation, and responsible growth. For more information about the summit, please visit the official event page or reach out to your usual contact at our firm.

The Stamp Duty Law (Law No. 19/1963) historically constituted a mechanism for the imposition of stamp duty on a wide range of documents in Cyprus. By virtue of Law No. 239(I)/2025, the Stamp Duty Laws were abolished as of 1 January 2026, with the result that new documents executed from 2026 onwards are no longer subject to stamp duty, while documents signed up to 31 December 2025 continue to be governed by the previous legal framework, pursuant to the applicable transitional provisions. Stamp duty was an indirect tax imposed on specific documents, enabling them to be regarded as fully valid and admissible for use before courts or public authorities. This obligation was regulated by the Stamp Duty Law (Law No. 19/1963), which underwent multiple amendments up to 2025. Payment of stamp duty was effected either through physical stamps or via electronic means, and failure to comply within the prescribed timeframes resulted in the imposition of penalties. For this reason, proper and timely stamping constituted a substantive prerequisite for the smooth use of documents in both private transactions and legal proceedings. A significant change occurred with the enactment of the Stamp Duty (Abolition) Law of 2025, pursuant to which the Stamp Duty Laws were repealed with effect from 1 January 2026. From that date onwards, documents and contracts executed or signed are no longer subject to stamp duty. Nevertheless, documents that were executed or signed up to 31 December 2025 remain subject to the provisions of the previous legislative framework, even where stamp duty had not been paid by that date. This transitional arrangement renders it necessary to review older agreements in order to determine whether any outstanding stamp duty obligations subsist. The abolition of stamp duty represents an important step towards simplifying administrative procedures and reducing transactional costs for both individuals and businesses. At the same time, it enhances flexibility in contractual arrangements and aligns the Cypriot legal system with modern practices aimed at facilitating business activity. Notwithstanding the abolition of stamp duty for new contracts, a proper understanding of the former regime remains important, particularly in cases involving older documents that continue to produce legal effects. It is important to note, however, that the abolition of stamp duty has not resulted in the abolition of court fees. The historical use of stamps as a means of paying court fees has caused a degree of confusion within the courts. As matters currently stand, court documents are still required to bear stamps as evidence of payment of court fees, which will continue to be used until existing stocks are exhausted. Court fees arise under the Court Fees Procedural Regulation (Cap. 546/1953) and relate to the fees payable for the use of judicial procedures, which were traditionally collected through stamp duty. In the meantime, a new method for the payment of court fees is being explored. Consequently, parties appearing before the courts should be aware that they will continue to be required to pay the prescribed fees applicable to the processing of their cases. In conclusion, the abolition of stamp duty marks a broader effort to simplify procedures and modernise the legal framework. Despite these changes, certain obligations remain in force, making proper awareness and adjustment essential.   Author: Myria Pornari, January 2026