How to use the Cyprus Company?

Cyprus Holding Company

Below there is a few of the reasons why a  Cyprus Holding Company is the ideal gateway to the European Union’s market.

  • Paying and receiving dividends with no withholding tax liability
  • Cyprus has over 60 Double Tax Treaties with other countries
  • There is no capital gains tax on the disposal of the shares of the subsidiaries unless the subsidiaries hold real estate property that is located in Cyprus
  • EU Parent-Subsidiary Directive apply

Financing and/or Treasury Company in Cyprus

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

The main benefits of using Financing and/or Treasury Cyprus Company are:

  • There are no withholding taxes with regards to receiving 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

Import – Export Cyprus Company

The Import-Export Cyprus 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.

Main Benefits of using a Cyprus Company for Import – export business:

  • Access to the European market of 500 million consumers
  • Access to Grants and Incentives from the Cypriot Government and the EU
  • One of the Lowest Tax rates in the EU, only 12,5% with easy-to-understand rules
  • Access to a deep pool of talent to work for the company as Cyprus has many graduates from the top Universities of the UK

Cyprus IP Holding Company

A Cyprus Intellectual Property Holding Company is mostly used for developing and managing intellectual property.

The new legislation introduced in Cyprus regarding income for intellectual property rights makes Cyprus one of the best Jurisdictions in the world and probably the most favored in the EU for establishing an Intellectual Property Holding Company.

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

  • Five-year amortization period
  • 80% exemption of profits from the exploitation of IP rights
  • Exemption of profits on disposal of IP rights or full exemption from tax if  the assets are held in a separate company and the shares of that company are disposed of instead of the assets themselves
  • Net royalty profits are considered 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 the EU
  • Cyprus’s legislation is in full compliance with the OECD directives

To start the incorporation process follow this link