The Cyprus Holding Company at a Glance

When deciding upon a corporate structure the location of a Holding Company is of great importance in order to take advantage of the many tax benefits on offer. Current applicable legislation makes Cyprus one of the best locations to incorporate Holding Companies.

What is a holding company? It is a company which is formed in such a way, so that its management can control and/or influence other companies within the same corporate structure.

Benefits of a Cyprus Holding Company in brief: A Cyprus Holding Company is usually formed in order to hold foreign investments, the income of which is distributed to non-residents.

Dividends received into the Cyprus Holding Company from overseas sources are tax exempt, provided that the holding exceeds 1% of the share capital in the overseas participation (only 1%!!!).

There is NO withholding tax on dividends to non-residents, irrespective of the country of residency or whether a Double Tax Treaty is in place or not.