It depends very much on where you are considering to form the Holding Company, for instant it is very common for both offshore and onshore businesses to form a Holding Company in
Denmark (part of Europe) the tax benefits, if it is a combination of a non EU company and Danish Holding company, are unique and you won't find the same savings anywhere else (In countries where you pay tax).
In general for Danish Holding Companies
What is a holding company, and how it works and what does it cost to create?
A holding company is roughly a company that owns the securities of another company.
There may be great advantages of having it if you already own shares / securities of a company personally. Especially if you are in time and generation, or later sell without personally being taxed.
In a holding company the following rules aply, if it just owns 25% of the subsidiary for at least a year, it may take up tax-free yield (applicable Danish holding companies). This enables the capital of the subsidiary are minimized to the commercially reasonable. Thus it may be cheaper to buy for a son or partner or a whole third.
When you sell the subsidiary must pay for the margin on the shares / shares if you own it personally. If you have owned it for less than three years, the capital, otherwise it is equity (28-43%).
When you sell the subsidiary but it is owned by the holding company for over 3 years, sales tax.
To take money out of the holding company
dividends paid 28-43% in taxes.
It costs around EUR 4-10,000 to create a holding company according to the advice you get with whether there should be several to owning the subsidiary, etc.
Beside the major Tax benefits, above, also apply for any other Holding company regardless where it is located.
The major 3 are : Assets protection, Tax safings and
Privacy Protection!
