Core Benefits

Incoming Dividends

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).

Outgoing Dividends

In Cyprus, there is no withholding tax on dividends payable to non-resident shareholders (whether a company or individual)

Securities

Profit from the sale of Securities (shares, bonds, debentures etc.) are also exempt from taxable income.

Interests & Royalties

No outgoing withholding taxes on interests and royalties.

Corporation Tax

Low tax rates for trading income (12.5% on net profits).

Fx Tax

No taxation on gains relating to foreign exchange differences (apart from Forex Companies).

Additional Tax Considerations

  • Group relief is granted
  • No capitalization rules
  • Reasonable stamp duty provisions
  • Possibility of re-domiciliation to other jurisdictions
  • Possibility of losses to be carried forward for 5 years
  • Flexible re-organization rules according to EU Directives
  • Absence of controlled foreign company (CFC) legislation
  • Possibility to be listed in stock exchanges (in Cyprus or other international stock markets)

Get in Touch

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Apostolou Pavlou 16, 2nd floor, 8046 Paphos, Cyprus.

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