Cyprus Holding
Company setup in Cyprus at a glance

Most entrepreneurs have dealt with the topic of a holding structure at one time or another, or at least have read about it or heard the term. You may have even come across our article – Basic Knowledge of a Holding Structure – in your previous research and therefore already know the meaning of some of the following questions:

• What is the current situation of my company, what business plans am I pursuing and is this a plausible reason to establish a holding company?
• What are the costs associated with establishing and managing a holding structure and are they comparatively beneficial?
• What are the opportunities and advantages of a holding company, both at home and abroad? Which location is best suited to my goals and plans?
• The question of the ideal location for a holding company in particular often does not receive the attention it deserves, as it seems obvious that the headquarters of a holding company should be linked to the operational location of the company. The opposite is the case!
• Because it is precisely the choice of location for the parent company that determines the future incorporation of your holding structure
• Sets the fiscal terms of your holding company,
• Determines how much flexibility can be used,
• And determines how liability, exit taxes, and other important issues can be meaningfully optimised.

In short, designing and implementing a holding structure requires not only years of experience, but also specialised knowledge. But since these points are usually not sufficiently taken into account either by the entrepreneur or by his advisors in the planning phase – and, moreover, no advisor wants to lose his local business – holding companies are often established in locations that are not necessarily the most favourable for holding structures.

In business communities, Cyprus, a Mediterranean country and member of the European Union, is truly no longer an insider tip. Especially since the introduction of the Cyprus Non-Dom Status Regime, the tax advantages for entrepreneurs and the comparatively low corporate tax, Cyprus may be referred to as the last tax haven within the European Union, despite the implementation of the CRS and the national CFC rules. For this reason, it is of great interest to consider Cyprus in the planning phase of a holding structure.

Is it worth setting up a Cyprus Holding Company?

Cyprus not only offers extremely comfortable conditions due to its pleasant location and Mediterranean climate but also a distinct business-friendly environment not found anywhere else in Europe. The bureaucratic requirements for businesses are quite moderate, taxes are low, the existing double taxation agreements are beneficial and the legal framework is almost too good to be true.

For this reason, hundreds of thousands of companies have chosen Cyprus as their location of choice in recent years.

Particularly when it comes to taking full advantage of the benefits offered by existing international double taxation treaties for holding structures, there is no getting around Cyprus in these times. Even when compared to Hong Kong Holding, USA Holding and many other international locations, Cyprus really does not need to sit on the backbench. Best of all, Cyprus is an EU member state, which for the entrepreneur means there are no hurdles between EU and non-EU structures.

With a Cyprus Holding, depending on the structure, dividends and income from business activities can be received almost tax-free, especially when combined with one or more subsidiaries outside Europe. The advantages of a holding company in Cyprus seem almost limitless.

We conclude our article on Cyprus Holding Companies with the unique advantages of the national arrangement and application of the so-called CFC rules in Cyprus, which are skilfully implemented and therefore much more relaxed. This in comparison to other European countries where the incorporation and connection of non-European companies is much more complicated. This creates freedom, flexibility and additional added value for a holding company, which you should definitely get to know better.

Our friendly team will be happy to advise you.