Cyprus holding company setup

Why you should have a holding company in Cyprus

A Cyprus holding company is a limited liability company that is utilised for holding shares in other companies. Holding companies are created as a productive way for consolidating ownership of operating subsidiaries. When choosing your holding company’s jurisdiction, tax and non-tax aspects must be taken into careful consideration. Cyprus has long been an established international financial centre for holding companies from a business and tax perspective.

A holding company is an important consideration in any international structure when the objective is to minimize taxes on income and gains.

Get our expert advice

At Oxford, our team comes with many years of practical experience in the areas of International tax planning and offshore business. We guarantee the highest standards of quality in professionalism and services.

The head of our team is a very dynamic International Tax Consultant, Mr. Athos Fouttis who is an author of many articles in international publications and often speaks at international tax and offshore seminars.

Our office is located in the main business district of Limassol Cyprus.

Our promise to you

We will give you the highest quality in services along with prompt and personal attention to your needs.

Our global network

We have a global network consisting of associates in the fields of taxation law, accounting, banking, trusts, investments, and general business consulting.

Our group motto

We will always provide prompt, professional, and personal service to our clients. Our promise reflects our irrevocable understanding to our clients and our associates’ respect and will deliver the highest standards of responsibility. It is the driving force behind our excellence that is delivered by our team and demonstrates our commitment to stability and loyalty toward and clients and our associates.

International tax planning

We have the knowledge and experience to offer you our consultant services and apply tax effective structures which will allow you and your corporation to operate effectively in the global economic market.

Banking Services

Opening business bank accounts is a relatively easy process for us. During the years we have cultivated competence and banking network that allows us to open accounts for all type of companies.

Accounting & Audit

The skilled and qualified professionals of our team can provide all of the accounting, bookkeeping, VAT and auditing services needs of any business

Substance Solutions

We have significant expertise providing bespoke substance solutions to international clients setting up Cypriot structures.

Global Corporate Services

Our corporate department has an expert team of professionals that draws together many years of practical experience in the services sector.

Licensing & Financial Services

Our resilient advisory teamof licensing and financial services professionals can assist you on the licesing and formation process of your Cyprus Investment Firm (CIF).

Why Cyprus is the right choice

International quality business centre

Cyprus has grown into a centre of international business offering specialized businesses services and processes to improve the efficiency of the business. Cyprus is also known for its rewarding business opportunities that cater to the diverse needs of the international investor.

The access point to the EU market

Cyprus provides easy access for investors targeting the EU market.

The Cyprus tax system

Over several decades, Cyprus has become a very favorable International Financial Centre chosen by business owners and entrepreneurs from around the world. They have experienced large profits using the Cyprus tax system and enjoying a tax rate of 12.5%.

The Cyprus legal system

Cyprus’ legal system is based on the UK Common Law principles and in agreement with the EU laws and regulations. The Common Law of the legal system offers a Cyprus company the perfect vehicle for holding and investing purposes.

Main advantages

Enjoy the lowest corporate tax rate in Europe at 12.5%.
A total tax exemption from tax on dividend income.
An exemption from withholding tax on payments of dividends, interest, and royalties.
Profits from dealing or disposal of securities are not subject to tax. A capital gains tax of 20% is only imposed on the sale of immovable property on Cyprus or shares of unlisted companies that own the property in Cyprus, subject to certain exemptions and reliefs. There is no capital gains tax for the sale of immovable assets.

Cyprus is in a network of more than 60 double tax treaties and presently in negotiations with many other countries. These treaties are able to take advantage of lowering or even eliminating the withholding tax on dividends, interests, or royalties.
Cyprus is a full member of the EU and offers the benefits from the provisions of the EU directives.
When profits or gains are created by re-organization, such as mergers, division, transfer of assets, exchange of shares, and the company is either a resident or non-resident in Cyprus, they are immune from corporation tax, capital gains tax, and transfer fees.
There are no debt-equity restrictions, no substance requirements, no minimum holdings period or thin cap rules apply to deduction of interest.

Group Loses Relief
The losses of one company in a group can be set-off against the profits of another if the companies are tax residents in Cyprus and if they belong to the same group for an entire year's appraisal.
A group relief applies when the holding company owns at least 75% of the share capital of the subsidiary or among the companies that belong to the same group for the entire with 75% each, directly or indirectly, in the other company.
Losses brought forward will not be available for the group relief, only the current year's losses can be transferred.