Cyprus for Holding and Trading Companies in 2026: Tax Rate, Regimes and Incorporation Steps
This article gives an overview of Cyprus as a base for a European holding or trading company in 2026, covering the tax rate, supporting regimes, incorporation practice and the points that decide whether the structure will hold up.
It matters to practitioners because Indian groups and their advisers regularly consider an EU-based entity for holding investments, owning intellectual property or trading into Europe, and the Cyprus corporate rate changed from 1 January 2026.
Why groups look at Cyprus
Cyprus is a member state of the European Union. Its legal system is influenced by common law, which makes contracts, company law and court procedure familiar to practitioners from India. It also has an extensive network of double tax treaties.