Cyprus Holding Company
Cyprus, as a well established International Financial Centre, has always been an excellent location for holding companies from tax and business perspective, among others. Cyprus holding company is an important consideration in any international structure where there is a desire to minimize the tax imposed on income and gains.For professional advice and assistance please contact firstname.lastname@example.org.
A Cyprus holding company is a limited liability Company that has the purpose of holding shares in other companies. In essence, holding companies are set up as an effective means of consolidating ownership of operating subsidiaries. When deciding on a jurisdiction of a holding company, both tax and non- tax factors must be carefully taken into consideration.
CYPRUS HOLDING COMPANY KEY BENEFITS
GROUP LOSSES RELIEF
CYPRUS HOLDING COMPANY DIAGRAM
Diagram showing the use of a holding company with direct and indirect holding in trading companies.
- Dividend received is exempt from taxation if the holding company holds shares directly in trading company A or Intermediate Holding Company.
- Subsidiaries can be resident anywhere
- If subsidiary A is EU resident then no withholding tax from paying subsidiary based on EU Parent – Subsidiary directive.
- If Subsidiary A is outside the EU then Cyprus Double Tax treaties are implemented.
- The group can also take advantage of the Double Tax Treaties of the non-Cypriot Intermediate Holding Company.