Cyprus Holding Company Formation – Tax-Free Dividends & Capital Gains
Set Up Your Cyprus Holding Company for Just €1300 + VAT
- ✅ 0% Capital Gains Tax on Share Disposals
- ✅ Tax-Free Dividend Income from Foreign Subsidiaries
- ✅ No Withholding Tax on Dividends to Non-Residents
- ✅ Access to 65+ Double Tax Treaties
- ✅ 2.5% Effective IP Tax Rate via the Cyprus IP Box
📩 Talk to us today. Complete the contact form below for a free consultation.
📦 What’s Included in the €1300 + VAT Package:
- ✔️ Name reservation and approval
- ✔️ Legal drafting of incorporation documents
- ✔️ Filing with the Cyprus Registrar of Companies
- ✔️ Government fees and certificates
- ✔️ One year of FREE registered office address
💼 Why Choose a Cyprus Holding Company?
Cyprus offers one of the most advantageous tax regimes in Europe for holding structures. Multinational companies benefit from:
- 📌 Capital Gains Tax Exemption: No tax on profit from the sale of shares, regardless of holding period or shareholding percentage.
- 📌 Dividend Income Exemption: Tax-free dividends from subsidiaries, subject to minimal conditions.
- 📌 Double Tax Treaty Network: Over 65 treaties reduce or eliminate withholding taxes on inbound payments.
- 📌 No Withholding Tax: Dividends paid by a Cyprus company to non-resident shareholders are not subject to WHT.
- 📌 IP Income Tax Rate of 2.5%: Leverage Cyprus’ IP Box to manage and exploit intellectual property efficiently.
🌍 Real-Life Tax Planning Examples
- 💸 Sale of Subsidiary Shares: A Cyprus holding company sells shares in a foreign entity and pays 0% capital gains tax on €1M profit.
- 📥 Dividend Collection: Receives €500,000 from a UK subsidiary tax-free in Cyprus due to favorable conditions.
- 🌐 Use of Tax Treaties: Reduces Russian WHT on dividends to 5% vs 15% via the Cyprus-Russia tax treaty.
- ⚙️ IP Licensing: Licenses patents for €200,000 and pays just €5,000 in tax under the IP Box regime.
📝 How to Set Up a Cyprus Holding Company
- Step 1: Contact a licensed Cyprus lawyer (required by law).
- Step 2: Choose a company name and obtain Registrar approval (3–5 days).
- Step 3: We draft all necessary documents, including M&A and forms HE1–HE3.
- Step 4: We file the company and obtain certificates within 7–10 days.
📄 Documents You Will Receive
- ✔️ Memorandum & Articles of Association
- ✔️ HE1, HE2, HE3 Incorporation Forms
- ✔️ Certificate of Incorporation
- ✔️ Shareholder & Director Certificates
- ✔️ Company Profile and Address Confirmation
⏱️ Formation Timeline
- Standard: 7–10 working days
- Express: 2–3 working days (extra fee)
📩 Contact Our Legal Team
We help you structure your holding company in full compliance with Cyprus and EU law. Reach out now for a free consultation.
💬 Client Testimonials
❓ Frequently Asked Questions
Is €1300 the full cost?
Yes, it includes name approval, legal drafting, Registrar fees, and 12 months of registered office service.
Can I open a bank account?
Yes. We help with bank introductions and KYC preparation. However, approval is at the discretion of the bank.
Do I need to visit Cyprus?
No. Everything can be completed remotely with scanned documents and video calls.
📚 Related Articles
- Κόστος Εγγραφής Κυπριακής Εταιρείας
- Ίδρυση Κυπριακής Εταιρείας – Διαδικασία
- Φορολογικά Πλεονεκτήματα της Κυπριακής Ιθύνουσας Εταιρείας
➡️ More Resources
Visit our legal knowledge portal CyprusCompaniesPortal.com for more resources and downloadable guides.
Note: We are an independent law firm and not affiliated with the Cyprus Registrar of Companies.