Cyprus has created the perfect environment within which to incorporate a holding company, either as an intermediate holding entity or as an ultimate holding company. Benefits to note include the fact profit from the disposal of securities is exempt from Cyprus tax, irrespective of whether this profit forms part of a company’s trading activity or is of a capital nature. There is no capital gains tax on disposal of real estate or other assets situated outside Cyprus and no time restrictions on carrying forward tax losses and the existence of group relief for utilisation of tax losses.
