Introduction
Cyprus holding companies provide a highly tax-efficient structure for international investments structures. The jurisdiction combines an extensive participation exemption regime with zero withholding taxes on profit repatriation fully aligned with EU, OECD and BEPS regulations.
Key Benefits of a Cyprus Holding Company
A holding company is regarded as a tax resident in any jurisdiction where its management and control take place, and in Cyprus this enables the business to access a wide array of benefits.
Cyprus has one of the lowest rates of corporation tax in the EU at 15%. This rate however can be considerably lower if you are eligible to apply for the Notional Interest Deduction (NID) which can reduce your income tax rate to as little as 3%.
