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Launch Your Cyprus Holding Company
EU Substance, Low Tax, Global Reach
Set up a Cyprus holding company with Orbit. We deliver a full EU compliant structure — incorporation, registered office, company secretary, accounting, audit, and substance support — giving you access to the EU’s tax directives and Cyprus’ 12.5% tax rate, one of the lowest in Europe.
Quick facts
| Feature | Value | Why it matters | |
| Best for | EU holding company, SME and mid-sized groups, family offices | EU status + low cost | |
| Setup speed | ~5–10 business days | Fast and predictable | |
| Minimum share capital | None (common: EUR 1) | Very low entry barrier | |
| Local director needed | Not legally required ( recommended for treaty access) | Substance strengthens tax benefits | |
| Company secretary | Yes | Statutory obligation | |
| Registered office | Yes | All companies must have one | |
| Corporate income tax | 12.5% flat | One of the lowest in the EU | |
| Capital gains tax on shares | None (except Cyprus real estate) | Efficient exits | |
| Withholding tax on dividends (outbound) | None (conditions apply) | Clean repatriation | |
| Participation exemption | Yes – on dividends and capital gains if conditions met | Core tax feature | |
| VAT | 19% standard | Register if taxable activity | |
| Audit | Mandatory for all companies | Required regardless of size | |
| Tax Treaty network | ~65 treaties | Good global coverage | |
| Banking ease | Moderate | Stronger with substance |
Key Considerations
- Cyprus residency is established when management and control are in Cyprus — appoint local directors and hold board meetings locally.
- Participation exemption applies to dividends and capital gains if antiabuse and subject to tax conditions are met.
- No withholding tax on outbound dividends to nonresidents unless the recipient is in an EU blacklisted jurisdiction.
- Mandatory audit applies to all companies, regardless of turnover.
- Transfer pricing and UBO reporting rules apply to relatedparty and ownership structures.
- VAT registration required if taxable turnover exceeds threshold.
Cost snapshot (USD)
| Cost item | One-time setup | Annual ongoing | |
| Incorporation and registration | 800 – 1,500 | – | |
| Company Secretary | – | 300 – 800 | |
| Registered office | – | 300 – 700 | |
| Accounting & bookkeeping | – | 800 – 1,500 | |
| Corporate income tax filing | – | 800 – 1,500 | |
| Mandatory audit | – | 1,500 – 3,000 | |
| Substance support (optional) | – | 1,000 – 3,000 | |
| Estimated total | 800 – 1,500 | 4,000 – 7,500 / year |
Actual cost depends on substance level, group complexity, and compliance scope.
Why Cyprus works for holding companies
Cyprus combines EU membership with one of the most competitive tax systems in Europe:
Tax Regime for Holding Companies
- Corporate income tax: 12.5% flat rate.
- Participation exemption: Dividends and gains from qualifying subsidiaries are exempt if the subsidiary earns less than 50% passive income and is subject to at least 6.25% tax abroad.
- Capital gains tax: None on foreign shares; applies only to Cyprus real estate or companies holding such property.
- Withholding tax: None on dividends, interest, or most royalties paid to nonresidents (subject to blacklist exceptions).
- Tax treaties: ~65 DTAs reducing foreign withholding on inbound payments.
- EU directives: Eligible for Parent Subsidiary and Interest & Royalties Directives.
What you get with Orbit
Pre-incorporation planning
Jurisdiction choice, structure design, treaty and dividend mapping.
Company setup
Incorporation, company secretary, registered office, and statutory filings.
Residency & treaty relief
Support obtaining tax residency certificates (TRCs) for foreign tax relief.
Substance & Governance
Resident directors, local board meetings, and minutes to support tax residency.
Tax compliance
Corporate income tax and VAT registration, provisional tax, and filings.
Accounting & audit
Management accounts, financial statements, coordination with licensed auditors.
