Choosing the right location for a holding company involves careful consideration of various tax and non-tax factors. A Cyprus holding company is often the preferred choice, due to the remarkable advantages of Cyprus.

About Cyprus as a Jurisdiction for Holding Companies

The Republic of Cyprus has established itself as the most attractive jurisdiction within the EU and globally for holding companies. Its investor friendly environment, business-friendly and unique tax system, EU membership and OECD compliance made Cyprus an ideal location for holding company. Being full member of the EU, Cyprus participates in the European Single Market, which allows the free movement of goods, capital, services and labour between EU member states.

During the last decades Cyprus has proven itself as a reputable international business and financial centre with a general corporate tax level of only 12.5 % on taxable income. Benefitting from specific, wisely shaped tax incentives, the overall effective rate of taxation may even be lower.Cyprus has signed Double Taxation Treaties with more than 60 countries by now and it is in negotiations with several other countries.Furthermore, Cyprus fully complies with all relevant regulations and directives of the EU, OECD, FATF and FSF. It is on the White list of OECD and has legally committed to the highest standards of transparency, which is an essential criterion for successful businesses in today’s world.

A Cyprus holding company may serve as a perfect gateway to the EU while receiving and paying dividends does not suffer from tax or withholding taxes.