Why Forming a Cyprus Holding Company may be ideal?
Forming a Cyprus Holding or Parent company may be proven to be a great step for your business. Cyprus lies at the top of the EU tax league, in terms of its tax regime attractiveness and due to its combination of consistency in interpreting EU tax legislation and stability in resisting frequent changes to EU tax laws. It is a well-known fact that operating in a country with an attractive corporate tax regime provides a competitive advantage when competing with overseas businesses.
The widely used legal form is the private limited liability company with a share capital of EUR1000 (although there is no minimum capital requirement) to be issued and paid up upon incorporation. This type of company must, by law, prepare and submit financial statements in accordance to IFRS. Furthermore, an annual return to the Registrar of Companies is required and an annual corporate income tax return has to be submitted to the Tax Department as per Cyprus’ Taxation Law.
TAX ADVANTAGES
- 12.5% Corporate Tax
- 2.5% Corporate Tax on revenues from Intellectual Property Rights (IP Box Regime)
- 0% withholding tax on dividend distribution to non-tax residents
- 0% withholding tax on interest paid to non-tax residents
- 0% capital gains tax on profits arising from sale of securities
- 0% capital gains or income tax applied on liquidation of the company
- 0% withholding tax is applied on the distribution of profit, except those arising from the disposal of property in Cyprus or profits arising from the disposal of the shares of a company that owns real estate in Cyprus
OTHER ADVANTAGES
- EU Member State and International Business Hub
- 50+ Treaties on the Avoidance of Double Tax
- Utilization of EU Parent-Subsidiary Directive
- It can be re-domiciled to a third country (provided is allowed by that country law)
- Can be listed in any stock exchange abroad
- No thin capitalization rules
- Low maintenance costs
- Diversified, Skillful and Well Educated Workforce
- No Inheritance Tax - Attractive Legislation on Inheritance Tax Planning
- EU Passporting for Funds, Investment Firms, Public companies
