A Cyprus holding company is one of the most effective vehicles for international tax planning and asset consolidation. It offers zero withholding tax on dividends, access to over 65 double tax treaties, and exemption from capital gains tax on share disposals, except for Cyprus-based real estate.

Cyprus distinguishes itself through a combination of EU membership, a common law legal system, and a stable, well-established regulatory environment. These qualities make it an attractive jurisdiction for managing cross-border investments, consolidating profits, and achieving long-term tax efficiency within a reliable legal framework.

To benefit fully from the Cyprus holding company regime, a business must demonstrate genuine economic substance. This includes appointing local directors, conducting board meetings in Cyprus, maintaining a physical office, and involving Cypriot professionals in daily operations. These steps are essential not only for securing tax treaty benefits, but also for meeting international standards on transparency and anti-avoidance.

Cyprus also provides a flexible corporate framework. Companies can undertake tax-neutral restructurings under the EU Merger Directive, benefit from group loss relief provisions, and deduct arm’s-length intercompany interest without being subject to thin capitalisation rules. There is no wealth tax or inheritance tax, and stamp duties are minimal.

At Solsidus Law, we advise high-net-worth individuals, family offices, corporate groups, and investment funds on establishing and managing Cyprus holding companies with precision and discretion. Whether you are consolidating international assets, optimising group structure, or preparing for succession, we ensure legal integrity, regulatory compliance, and strategic alignment throughout every stage of the process.