We offer strategic corporate tax planning solutions to help UK and EU companies significantly reduce their corporate tax liabilities. One of the most effective structures involves establishing a holding company in Cyprus, which provides numerous tax advantages, including:
- 0% Tax on Foreign-Sourced Dividends – Dividends received from foreign entities are not subject to taxation.
- Tax-Free Disposals of Shares and Qualifying Titles – Profits from the disposal of shares and corporate bonds are tax-free, provided the disposed entity does not hold immovable property in Cyprus.
- No Withholding Taxes – Payments made abroad, including dividends, interest, and royalties, are exempt from withholding taxes.
- Tax-Free Profits for Foreign Branches – Companies can enjoy 0% tax on profits from foreign branches, with an option to tax if preferred.
- Favorable IP Tax Regime – The Cyprus Intellectual Property (IP) tax regime allows for an effective tax rate as low as 2.5% on qualifying income.
- No Tax on Foreign Exchange Gains – Unless earned by professional Forex traders, foreign exchange gains are not taxed.
- Extensive Double Taxation Agreements – Cyprus has treaties with nearly 60 countries, ensuring reduced tax exposure and preventing double taxation.
- Non-Domiciled (Non-Dom) Tax Benefits – Individuals who become tax residents in Cyprus and meet the “60-day rule” benefit from 0% tax on dividend and interest income for up to 17 years.
- 60-Day Rule for Tax Residency – Individuals spending at least 60 days per year in Cyprus while meeting other conditions are considered tax residents.
- EU and Eurozone Membership – Cyprus is a full member of the European Union and the Eurozone, offering regulatory stability and financial benefits.
Our expert team can help structure your business operations to maximize these tax advantages while ensuring full compliance with legal requirements. Contact us today to explore how our tailored tax planning solutions can benefit your business.