CYPRUS HOLDING COMPANY
A holding company is a company that holds shares
in other companies.
Why Cyprus companies are used as holding
companies? There are many reasons:
— Cyprus has the lowest rate of corporate tax in
Europe of 10 %
— under certain conditions dividends received
from overseas subsidiaries to the Cyprus parent
company are exempt from tax
— no withholding tax on dividends received from
EU subsidiaries
— there is no capital gains tax on the profits from
the sale of securities
— there is no tax on capital gains or income on the
liquidation of the Cyprus holding company
— there is no tax to payment of dividends to
shareholders of the Cyprus holding company
living outside Cyprus
— double tax treaties for the avoidance of double
taxation with more than 40 countries
— no withholding tax on distribution of profits
