Uses of Cyprus companies
A company incorporated in Cyprus can be used for any legal trading or investment purpose. Because Cyprus is a full member of the European Union it is a particularly attractive for certain activities and these are described on this page.
Cyprus International holding companies
- Cyprus is a member of the EU (and therefore entitled to EC Parent/Subsidiary Directive Relief)
- Dividend income, and capital gains from the sale of shares, are exempt from the 10% Cyprus tax rate
- No Cyprus withholding taxes on dividends paid to non-residents of Cyprus
- Cyprus is a member of the EU (and therefore entitled to the EU directive on interest and royalties)
- Cyprus taxation on royalty and interest income is favourable
International trading companies in Cyprus
- The Cyprus tax rate is just 10%
- Under trading sub-contracts, the Cyprus sub-contractor company can pay tax-deductible fees to an offshore contractor company thus minimising the impact of Cyprus taxation in appropriate cases
- Cyprus companies, which are managed and controlled outside Cyprus, are exempt from Cyprus taxation
To discover more about offshore company formation in Cyprus, call us on +353 1 431 9663.
