None or low withholding tax from foreign jurisdictions and no local tax (apart from specific circumstances).
Cyprus Holding Companies are subject to no or low withholding tax rates due to the fact that Cyprus has signed over 59 double taxation treaties and is part of the European Union Parent-Subsidiary Directive within EU member states and applies for unilateral tax credit relief. Additionally, dividends received from Cyprus or overseas companies are exempt from corporate income tax rates (apart from specific circumstances).
In Cyprus, there is no withholding tax on dividends payable to non-resident shareholders (whether a company or individual)
Profit from the sale of Securities (shares, bonds, debentures etc.) are also exempt from taxable income.
No outgoing withholding taxes on interests and royalties.
Low tax rates for trading income (12.5% on net profits).
No taxation on gains relating to foreign exchange differences (apart from Forex Companies).