Holding Company in Cyprus

A Cypriot Parent Company or Holding Company is a company that has been established in Cyprus and which participates through the ownership of shares in other companies around the world and in Greece.
Beyond its participation in other companies, the Cypriot Parent Holding Company can also develop various activities, such as commercial, construction, financial, and others without restrictions.
The Cypriot Parent Holding Company ensures a reduction of risk for its owners while simultaneously providing the possibility of ownership and control over various corporate structures and companies. Cyprus is one of the most favorable destinations for creating parent companies in Europe.
Indeed, the use of a Cypriot Parent-Holding Company offers significant financial advantages to investors or entrepreneurs operating in Greece through Greek companies. This is because Greek companies (subsidiaries), whose shares are held by a Cypriot Parent Holding Company, can distribute dividends to the Cypriot Parent Holding Company, provided the criteria of the EU Parent-Subsidiary Directive are met, without withholding tax in Greece, as the dividend tax in the Republic of Cyprus is 0%. The same process can also be applied in any part of the world where there is business activity.
The Cypriot Parent Holding Company is also a significant tool for its owner as it gives them the ability to sell their participation percentage in a company in which they are a shareholder through the Cypriot Parent Holding Company, by selling the holding company itself at a minimal cost and immediately.
Cyprus’s tax system, for Cypriot companies, has no withholding on dividends, and the dividend tax is 0%, just as there is no withholding tax on interest on distributed dividends.
The Republic of Cyprus has more than 50 double taxation avoidance treaties with countries, through which the role of these conventions to avoid double taxation is made clear.
The Cypriot Parent Holding Company can also be the owner of real estate worldwide, where, according to the current legislation of the Republic of Cyprus, there is no tax on profits from the sale of securities.
For a Cypriot Parent Holding Company to be considered a tax resident of Cyprus and to benefit from the tax advantages defined by law, it must meet certain criteria, which are applied according to the Anglo-Saxon legal system that governs it.
A Cypriot Parent Holding Company can become a shareholder in a Greek company – a legal entity, by complying with the current legislation defined by the Greek tax system for the process to be done correctly and for its proper operation.