Legal guide — holding companies in Cyprus

Because of its favourable tax regime, compliance with EU regulations and strict anti-money laundering regulations, Cyprus is considered as a very attractive holding company jurisdiction. For the purposes of this publication, a ‘Cyprus Holding Company’ is defined as a limited liability company incorporated in Cyprus whose principal object is the holding and managing of participations in other companies.

Trading income of a Cyprus Holding Company is taxed at a flat rate of 10%.

Dividends and other profit distributions received by a Cyprus Holding Company from another Cyprus tax resident company are exempt from corporation tax.

Dividends and other profit distributions received by a Cyprus Holding Company from a foreign company will be tax exempt. Such income is also exempt from Special Defence Contribution provided that the Cyprus Holding Company receiving the dividend owns at least 1% of the foreign company paying the dividend…

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