Launch Your Cyprus
Holding Company
An EU holdco at a lean running cost, done by the book.
Cyprus offers much of what the Netherlands and Ireland do: European Union access, a dividend exemption, and a wide treaty network, at a noticeably lower running cost. Orbit incorporates it, runs the books to EU substance standards, and prepares the Form 5471 and earnings and profits tracking your United States tax preparer needs.
(was 12.5%)
(blacklist exceptions apply)
Key Jurisdiction
Considerations
Setting up a corporate entity in Cyprus comes with standard regulatory compliance items. Orbit ensures complete legal alignment with Registrar of Companies and Tax Department requirements from day one.
100% Fully Managed Support
From resident nominee directors to local corporate secretary requirements, we cover every compliance checkpoint seamlessly.
Corporate tax from 2026
The rate rose from 12.5% to 15% on 1 January 2026 to align with the Organisation for Economic Co-operation and Development global minimum. A pure holding company often pays little of it, given the dividend and participation exemption.
DTAs, including the United States
A full European Union member with access to the EU directives and a wide treaty network, reducing withholding on European flows, typically at a lower running cost than the Netherlands or Ireland. The United States treaty is in force and carries a Limitation on Benefits article.
Withholding on outbound dividends
No withholding on dividends to non-residents, dividend income broadly exempt, and gains on share disposals generally untaxed, with a carve-out for Cyprus real estate.
IP Box effective rate
Qualifying intellectual property income is effectively taxed at about 2.5% under the Cyprus IP Box, an 80% deduction on qualifying profit. It is compliant with the modified nexus approach and unaffected by the 2026 rate reform.
Quick Facts
| Feature | Value | Why it matters |
|---|---|---|
| Best for | EU holding company, small and mid-sized groups, family offices | EU status at low cost |
| Setup speed | About 5 to 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 |
| United States income tax treaty | In force, with a Limitation on Benefits article | Substance is what makes the treaty usable |
EU holding company, small and mid-sized groups, family offices
EU status at low cost
About 5 to 10 business days
Fast and predictable
None (common: EUR 1)
Very low entry barrier
Not legally required (recommended for treaty access)
Substance strengthens tax benefits
Yes
Statutory obligation
In force, with a Limitation on Benefits article
Substance is what makes the treaty usable
What’s Included & Pricing
Complete transparency. Review what is covered under our standard package and how our tailored corporate pricing is structured.
Standard Package Inclusions
- Incorporation via licensed registered agent
- Registered agent and registered office
- Annual government compliance
- Economic substance and annual return filing
- Accounting and recordkeeping
Tailored Transparent Pricing
We tailor pricing based on your business profile, structure, and scope of services. Costs are discussed and confirmed after a quick review of your requirements, ensuring you only pay for what you actually need.
Why Cyprus Works for Holding Companies
Low EU Tax
15% corporate tax, still among the lower rates in the European Union.
No Dividend Withholding
No withholding tax on outbound dividends, subject to conditions.
No Share-Gains Tax
No capital gains tax on the sale of shares, except for Cyprus-situated real estate.
Participation Exemption
Participation exemption for qualifying dividends and capital gains.
Treaty and EU Access
Access to 65 or more double tax treaties and the EU directives.
Credible and Compliant
A credible, audited, and fully EU-compliant jurisdiction.
Tax Regime For Holding Companies
Corporate income tax
15% flat rate from 1 January 2026. The rate was 12.5% for periods before that date.
Participation exemption
Dividends and gains from qualifying subsidiaries are exempt if the subsidiary earns less than 50% passive income and is subject to a comparable rate of tax abroad.
Capital gains tax
None on foreign shares. It applies only to Cyprus real estate or companies holding such property.
Withholding tax
None on dividends, interest, or most royalties paid to non-residents, subject to blacklist exceptions.
Tax treaties and EU directives
About 65 double tax agreements, including the United States, plus eligibility for the EU Parent-Subsidiary and Interest and Royalties Directives.
United States owner treatment
A Cyprus company owned more than 50% by United States shareholders is generally a Controlled Foreign Corporation. Income can be picked up under Subpart F or Global Intangible Low-Taxed Income, Section 245A may apply to qualifying dividends, and Form 5471 is filed with the United States return. Orbit prepares the records and coordinates filing with licensed United States tax partners.
Corporate Tax Calculator
Estimate corporate income tax at the Cyprus 15% flat rate.
Qualifying dividends and gains are exempt under the participation exemption, and the 15% headline rate applies to taxable profits from 1 January 2026. United States owners should model the Subpart F, GILTI, and Section 245A position separately.
What You Get With Orbit
A fully managed, end-to-end statutory solution for international corporate holdings.
Pre-incorporation planning
Jurisdiction choice, structure design, and treaty and dividend mapping.
Company setup
Incorporation, company secretary, registered office, and statutory filings.
Residency and treaty relief
Support obtaining tax residency certificates for foreign tax relief.
Substance and governance
Resident directors, local board meetings, and minutes to support tax residency.
Tax compliance
Corporate income tax and Value Added Tax registration, provisional tax, and filings.
United States reporting support
We assemble the Form 5471 package, earnings and profits schedules, and treaty documentation your United States preparer needs. Filing and Internal Revenue Service representation are handled by licensed United States tax partners.
Accounting and audit
Management accounts, financial statements, and coordination with licensed auditors.
How The ProcessWorks
A highly structured compliance timeline tracking setup steps from day zero kickoff to annual filings.
Kickoff and KYC (Day 0)
Collect shareholder and director identification and confirm structure.
Incorporation (typically 5 to 10 days)
File with the Registrar and appoint the company secretary and registered office.
Banking and tax registration
Open a local account and register for corporate tax and Value Added Tax if needed.
Go-live
Activate the governance and reporting calendar.
Annual maintenance
Manage accounts, audit, tax filings, and renewals, with the Form 5471 package prepared on the same cycle.
What we need from you
KYC documents for shareholders and directors.
Ownership chart and source of funds.
Intended activities and income flow.
United States shareholder details and ownership percentages for Form 5471 scoping.
Preferred substance level (light or full resident).
Who this is ideal for
EU holding company
Small and mid-sized groups
Family offices
Tell us your use case
Ready to get started?
Trusted by high-
growth organizations
"I've been working with Orbit since the beginning of 2026 and couldn't be happier. They are professional, detail-oriented, responsive, and always timely. As the owner of a one-person corporation, I greatly appreciate having such a reliable accounting team in my corner. Highly recommended!"
Maja Djikic
Consultant
Global Entity Management Pricing
Affordable EU Holding
Cyprus Holding Company
Global Entity Management Service
Pricing
Custom Pricing
Setup fee plus annual management fee per entity. Multi-entity discounts available.
A low-cost, fully EU-compliant holding jurisdiction with treaty benefits and no withholding tax on most outbound dividends.
Jurisdiction Quick Facts
Why Cyprus Works
- 15% corporate tax, still among the lower rates in the EU
- No withholding tax on outbound dividends, conditions apply
- No capital gains tax on the sale of foreign shares
- Participation exemption plus access to EU directives
Standard Package Inclusions
- Incorporation via licensed registered agent
- Registered agent and registered office
- Annual government compliance
- Economic substance and annual return filing
- Accounting and recordkeeping
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Frequently Asked Questions
Not legally, but a Cyprus-resident majority board is what supports tax residency and treaty access, so we recommend it.
Incoming dividends from qualifying subsidiaries are broadly exempt, and there is no withholding tax on dividends paid to non-residents, subject to blacklist exceptions.
Yes. An annual statutory audit is mandatory for all Cyprus companies, regardless of size.
Not on the sale of foreign shares. Capital gains tax applies only to Cyprus-situated real estate or companies holding such property.
Only if the company makes taxable supplies above the registration threshold. A pure holding company often does not.
Yes, where management and control are exercised in Cyprus. We support the application as part of the annual cycle.
15% from 1 January 2026. It was 12.5% for earlier periods, so older material and prior-year filings will show the lower figure.
No. Orbit prepares the books, the Form 5471 package, and the supporting schedules. Filing and Internal Revenue Service representation are handled by licensed United States tax partners.