The Cyprus Holding Company: Benefits at a glance

In our article “A Step by Step Guide for Forming a Company in Cyprus” we explained the benefits and the procedure for setting up a company in Cyprus. This article looks more closely at the benefits of a Cyprus holding company.

Cyprus is an EU member state with a transparent legal system based on English common law and a tax regime aligned with EU and OECD standards. That combination makes it a common choice for international groups looking for a holding company in Europe.

A Cyprus holding company is formed in the same way as any Cyprus limited company. Once the company name is approved and all documents are in order, registration usually takes 5 to 8 working days. The steps are set out below.

Company Name

Submit at least three alternative names, in Greek or Latin characters, so the Registrar of Companies can check availability. The word “Limited” is added at the end of the chosen name.

Memorandum and Articles of Association

Once the name is approved, provide the lawyer with the company’s planned activities, share capital and internal rules, so the Memorandum and Articles of Association can be drafted.

Shareholders

Every company needs at least one shareholder, who can be an individual or a company. The ultimate beneficial owner must be disclosed to the authorities under Cyprus and EU anti-money laundering rules.

Board Members

Every Cyprus company must appoint at least one director and a company secretary. A majority of Cyprus resident directors who meet and take decisions in Cyprus helps the company show it is managed and controlled from Cyprus, which matters for access to double tax treaties. A Cyprus-based secretary is also recommended, so company documents can be signed without delay.

Registered Office

Every Cyprus company must have a registered office address in Cyprus.

Benefits of a Cyprus Holding Company

1. It enjoys all the tax benefits of any Cyprus limited company:

a. Corporate tax of 15% on taxable profits from 2026, in line with the OECD global minimum.

b. A legal system based on English common law, known for its transparency and reliability in business.

c. Dividends paid to shareholders who are not tax resident in Cyprus are not taxed in Cyprus.

d. A network of more than 65 double tax treaties.

e. No exchange controls, so the company can hold bank accounts in any currency, anywhere in the world.

f. Tax losses can be carried forward for seven years, and group relief is available.

2. Gains from the sale of shares, bonds and similar securities are exempt from tax, except for shares in companies that own real estate in Cyprus.
3. Dividends received from subsidiaries are generally exempt from tax. Conditions apply to some dividends from abroad.
4. Cyprus does not generally withhold tax on dividends and interest paid to non-resident shareholders, and royalties are taxed only when the rights are used in Cyprus. Exceptions apply to payments made to related companies in jurisdictions on the EU list of non-cooperative jurisdictions and, from 2026, to certain low-tax jurisdictions.

Beyond these benefits, owners who set up a Cyprus holding company can also choose to move to Cyprus, with its good infrastructure, education and healthcare. Building real substance in Cyprus also gives the company access to a well-educated, multilingual workforce.

We can help you form a Cyprus holding company that meets all the requirements of the Cyprus authorities.

For tax planning and a detailed analysis of your case, please contact us.

This article provides general guidance on forming a holding company in Cyprus. It is not tax or legal advice. We give tailored advice for each client’s circumstances.