Offshore of Cyprus Registration of firms the English companies
 
 
 

CYPRUS COMPANY AS HOLDING COMPANY

The resent revision of the income tax law and others business related laws in Cyprus have resulted in some very interesting new possibilities for international businesses.
One particular such possibility which may be very beneficial in international taxation planning for businesses is the use of a Cyprus company as a Holding Company.
 
A Cyprus tax resident Company is a company incorporated in Cyprus and management & control are exercised from territory of Cyprus.
 
Important: The shares of a Cyprus Company can be owned 100% by non-residents
 
A Holding Company is a company which has as its only or main activity that of holding investments in other companies or entities.
 
There is a list of advantages which the use of a Cyprus Holding Company may give to an international business:
  1. Income form dividends is tax free
  2. Gains on the sale of shares are tax free
  3. Capital gains on disposals of capital assets are tax free for immovable property outside of Cyprus
  4. Profits from activities of a Permanent Establishment abroad are tax free – proved that the Company has paid corporate tax in respect of Permanent Establishment income in country of the Permanent Establishment.
  5. Lower withholding tax rates in other countries on remittances of income from dividends, royalties or inertest due to wider applicability of Treaties for the avoidance of Double Taxation
Generally, international businesses may derive very important tax benefits from using a Cyprus Holding company. This is due to the combination of a completely tax free income from dividends and the reduced ( or eliminated) withholding taxes from the extensive network of Treaties for the Avoidance of Double Taxation which Cyprus has.