Cyprus is a member of the European Union and the Eurozone. It features on the white list of the OECD and has committed to the highest standards of transparency, assuming an early-adopter status for the automatic exchange of information on tax matters.
Use of the Cyprus holding company is widespread in project finance, cross-border transactions and global investment management.
Amongst other advantages, a Cyprus holding company can achieve low or zero withholding tax rates when extracting dividends from underlying subsidiaries by relying on either:
► an applicable double tax treaty, or
► the provisions of the EU Parent Subsidiary Directive.
Cyprus has concluded over 50 agreements for the avoidance of double taxation, and has one of the largest collections of treaties globally, including the United States of America, Canada, India, China, Russia, the majority of European countries and the C.I.S. countries.