Why A Cyprus Holding Company Still Makes Sense In Cross‑Border Structures

A Cyprus holding company is commonly used as the top or intermediate entity within an international group, owning shares in operating companies located in other jurisdictions, receiving dividend income, and where relevant facilitating a future disposal of those shareholdings.

This type of structure is not suitable in every case. Its effectiveness depends on the location of the subsidiaries, the nature of their activities, and the tax residence of the ultimate shareholders. Nevertheless, Cyprus continues to be considered a serious jurisdiction for international holding structures, particularly following the recent tax reforms that took effect in 2025–2026.

The function of a holding company in practice