4th reason out of 8 to register your company under the Cyprus jurisdiction

Establish a Holding Company in Cyprus

There is a number of reasons why Cyprus is considered as an ideal jurisdiction for an individual to register their company. The fourth aspect that is going to be visited is the establishment of a holding company in Cyprus.

Under the Cyprus law, there is no withholding tax on dividend income from EU resident subsidiary and non-EU resident subsidiaries. What is more, favourable rates are provided by double tax treaties. Also, there is no withholding tax for dividends, interests and royalties paid to non-residents except from royalties for intellectual property (withholding tax at 10%).

Another significant aspect is the favourable tax rate on corporate income which is at 12,5%, and should not necessarily be generated from international activity.

There is also group relief losses provisions for companies which are Cyprus or EU tax resident companies. The significant percentage of 75% subsidiary of the other or both 75% subsidiaries of another company should also be put into consideration.   

Finally, there are no taxes applied to non-residents on gains from the disposal of shares or upon liquidation, providing that the company does not own real estate in Cyprus.

This article is only for information purposes. Should you require more expert guidance please contact Simon Zenios & Co LLC below:

Email: [email protected]

Telephone: +357 24 023370

Published on: 11/10/19