Company Applications2019-04-13T09:23:27+00:00

Cyprus Holding Company

A Cyprus Holding Company is a company which has participations in other companies or holds different kinds of assets (immovable property, bank accounts etc). A Cyprus Holding Company can also be engaged in other activities such as trading, manufacturing etc.

The advantageous features of the Cyrus Tax legislation on:

Paying and receiving dividends

The wide network of Double Tax Treaties signed by Cyprus and other countries

The full exemption from local taxation on the realization of capital gains from the sale of shares in subsidiaries

And many other benefits that make Cyprus one of the most attractive locations in the world for establishing a Holding Company

Cyprus Financing Company

A Cyprus Financing Company is used to provide interest bearing loans to its subsidiaries and result in a beneficial accumulation of interest income.

The main benefits of using Cyprus Financing Company are:

The tax regime with regards to receiving of interest from intra-group lending (12,5%)

The fact that there are no thin capitalization rules / no debt-to-equity requirements

Cyprus’s legislation is in full compliance with the OECD directives

Interest paid to nonresident creditors is not subject to any withholding taxes

The EU Interest and Royalty Directive applies

Cyprus Trading Company

A Cyprus Trading Company can be used for the invoicing and re-invoicing of goods and services, as well as for the receipt of trading commissions, from any country to any destination. It is also used for transit trade from bonded warehouses, bonded factories and the free trade zones. The main reason for using a Cyprus Trading Company is favorable corporate tax rate of 12,5%.

Cyprus Ip Holding Company

A Cyprus Royalty Company is mostly used for sub licensing of intellectual property rights.

The new legislation introduced in Cyprus regarding income from intellectual property rights make Cyprus one of the best Jurisdictions in the world and probably the most favored in EU for establishing a Royalty Company

The main benefits derived from the introduction of the new legislation know as ‘IP box’ are:

Five year amortization period

80% exemption of profits from exploitation of IP rights

Exemption of profits on disposal of IP rights or full exemption from tax if  the assets are hold in a separate company and the shares of that company are disposed instead of the assets themselves

Net royalty profits are consider as operating profits and are taxed at 12,5% but the effective tax rate in many cases is as low as 2,5%, one of the lowest in EU

Cyprus’s legislation is in full compliance with the OECD directives

Contact us for a professional advice tailored to your needs

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