Cyprus accounting offices and Holding Companies
Cyprus IBC’s are very popular to hold shares in subsidiaries and associate companies operating internationally. The advantages of a Cyprus Holding IBC are the following:
Dividends received by a Cyprus Holding Company are totally exempt from taxation provided that the Cyprus Holding company owns at least 1% of the overseas company.
This exemption does not apply if more than 50% of the overseas company’s activities result directly or indirectly in investment income and the foreign tax is significantly lower than the tax rate payable in Cyprus .
Profit from the sale of securities
Profits realized by a Cyprus Holding Company from the sale of shares and other securities are exempt from tax.
The only exemption applies, and taxation at 20% will take place, if and to the extent that a profit is realized upon the sales of shares in certain companies owning Cyprus real estate.
No withholding tax on dividends distributed to non-resident shareholders of Cyprus Companies.
No withholding tax on interest paid by a Cyprus Company to non-resident creditors.
Cyprus has concluded tax treaties with more than 40 countries worldwide. Dividend Income received in Cyprus benefits from the low withholding taxes imposed by countries which signed Tax Treaties with Cyprus .