Cyprus Holding Company
Cyprus holding company advantages & tax benefits.
Stavrinou & Co brings to the forefront the strategic benefits and tax advantages of establishing a holding company in Cyprus, a choice that has gained popularity for its robust investment, financing, and holding capabilities. This preference is largely attributed to the enticing treaty network and tax incentives offered by the Cypriot tax system. Let’s delve into why Cyprus stands out as a premier business and lifestyle destination.
Cyprus: A Synthesis of Business Acumen and Lifestyle
Cyprus is not just a picturesque island but a dynamic business hub that marries a straightforward tax regime with compliance to EU and OECD standards. Its legal framework is meticulously crafted to cover corporate and commercial activities, ensuring that businesses operate smoothly and efficiently. The island’s strategic location provides seamless access to international dispute resolution mechanisms, such as litigation and arbitration, supported by an advanced service infrastructure. Beyond business, Cyprus boasts an outstanding education system, a reasonable cost of living, exceptional weather, and unparalleled hospitality.
Defining Your Business Presence in Cyprus
The fiscal identity of a Cyprus-based company is anchored in the locus of its management and control, which is considered to be within Cyprus when:
- The board of directors primarily comprises Cyprus residents.
- Board meetings are convened in Cyprus, with minutes recorded and maintained at the company’s local registered office.
- Strategic company policies are crafted within Cyprus.
- The issuance of general powers of attorney to individuals not resident in Cyprus for tax purposes is avoided.
Leveraging Holding Companies for Growth and Protection
A Cyprus holding company serves as a powerful vehicle for capital accumulation, shareholder value enhancement, reinvestment into new ventures, profit distribution, and asset safeguarding.
Key Benefits of a Cyprus Holding Company
- Competitive Corporate Tax: A flat 12.5% tax on global income, highlighting Cyprus’s commitment to fostering business growth.
- Dividend Tax Exemptions: Dividends received from both local and international entities are exempt from corporate tax.
- No Defence Tax on Dividends: This exemption applies provided the dividend-paying entity’s income primarily comes from trading activities and is taxed at a rate exceeding 6.25%.
- Capital Gains Shield: No tax on the sale of shares, enhancing investment fluidity.
- Global Tax Efficiency: An extensive tax treaty network ensures minimal or no withholding tax on dividends received from abroad.
- Dividend Distribution Freedom: No withholding tax on dividends distributed to international shareholders, whether they are individuals or corporations.
- Access to a Broad Treaty Network: Capitalize on Cyprus’s double tax treaties with numerous countries for optimized tax planning.
- Gateway to Europe: Cyprus serves as your entry point to the European market, offering unparalleled business opportunities.
Stavrinou & Co is dedicated to guiding you through the strategic advantages of establishing a holding company in Cyprus. With us, your business is positioned not just for growth but for global reach and protection.
If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in this contact form.
We will analyze your case and advice you on:
- What company structure suits you best,
- What is your best Tax solution(s) for your business,
- What Banking and cash flow arrangements available.
We will take you through a step by step process from A to Z in creating the perfect business structure in Cyprus.
Can’t wait any longer? Fill in the form and submit your inquiries make your first step and we will deal with the rest.
Become even more successful by working with accountants you can count on and be among the thousands business that already did.
