Cypriot holding company is an ordinary company which, besides having a participation in domestic and/or foreign companies, it may also be engaged in other activities such as trading, manufacturing or financing. The company is liable to be taxed in Cyprus on its worldwide income, provided that it is managed and controlled in Cyprus.
The main advantages of a Cyprus Holding Company are:
- Dividends are exempt from tax in most of the cases
- No tax on disposal of shares
- No withholding taxes on distribution of dividends outside Cyprus
- Benefit from wide Cyprus Double Tax Treaties
- Benefit from interest and royalties directive
- Benefit from parent subsidiary directive