Why Cyprus Holding Companies Are More Resilient Than Ever in 2026

Dr. Anil Gupta | Last updated: 01 May 2026

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Cyprus holding companies remain a strong choice for foreign investors, even after significant tax reforms implemented in 2026. While the corporate income tax rate increased, key advantages like the abolition of Deemed Dividend Distribution, reduced Special Defence Contribution (SDC) on dividends, and an expanded tax loss carry-forward period offer new benefits. Crucially, core advantages such as the participation exemption scheme, tax-free dividends for non-residents, an extensive Double Tax Treaty network, and the IP box regime remain untouched, ensuring continued attractiveness for international business structures.

Cyprus has long been considered one of the best destinations for the establishment of holding companies. And 2026 can be called a critical turning point since the Cypriot government implemented its biggest tax overhaul in 20 years. Yet, despite all changes, it did not become less attractive. Let us consider everything that the holders of foreign business structures should know to make the most of Cyprus after tax reform in 2025. The Major Change and What It Means On December 22, 2025, the parl

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About the Author

Dr. Anil Gupta

Doctrate (Intl. Business)

Dr. Anil Gupta is the Chairman of the Connect Ventures Group of Companies, a visionary strategist often described as an Entrpreneurship Guru by choice.With a mission to empower Indian entrepreneurs the "economic soldiers" of the nation he has dedicated his career to bridging the gap between local ambition and global sc ... Read more

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