CYPRUS HOLDING COMPANY
Cyprus, as a well established International Financial Centre, has always been an excellent location for holding companies from tax and business perspective, among others. Cyprus holding company is an important consideration in any international structure where there is a desire to minimize the tax imposed on income and gains.
Cyprus is the ideal location for establishing and operating a holding company because of Cyprus extensive network of double tax treaties and access to the EU directives along with its attractive tax system and its strategic position connecting Europe, Middle East and Asia.
A prospective client usually chooses Cyprus for setting up a holding company for the following reasons:
• lowest fixed corporate tax rate in Europe, only 10 %;
• all expenses incurred for the production of the income are deducted before arriving at the taxable income;
• losses can be carried forward indefinitely; Group tax less relief is available for companies forming part of a group, as defined under the law, thus allowing losses of one company to be set off against profits of another company;
• assist international groups seeking for low tax jurisdictions on dividend income. Such dividend income is tax exempt in most cases. The exemption from tax also applies to profits of a PE the Cypriot Company has in another jurisdiction.
• assist local groups paying dividends outside Cyprus to minimise their tax liability. There is no withholding tax liability;
• take advantage the favourable Double Tax Treaty Network of Cyprus and the EU directives;
• benefit from the favourable repatriation provisions of Cyprus tax law from payments of dividend, interest and royalties without the need to pay any withholding tax;
• exemption from capital gains tax on any disposal of the holding in an underlying company;
• flexible reorganization rules enabling rapid restructuring with minimum tax implications;
• Redomiciliation is permitted;
• Cyprus does not have any controlled foreign company legislation (CFC);
• Cypriot tax legislation does not contain any thin capitalisation regulations.
The Oxford Team consists of accountants, international tax consultants, lawyers, bankers and other professionals who shall be pleased to assist you with any of your queries.
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