The best countries for holding companies in 2026 include the Netherlands, Singapore, and Luxembourg, offering strong tax efficiency, treaty access, and legal certainty.
Choosing the right jurisdiction can significantly impact profits, compliance, and long-term business planning.
Questo articolo tratta di:
- What is a holding company and how does it work?
- What are the tax implications of a holding company?
- What are the advantages and disadvantages of holding companies?
- How to set up a holding company?
Punti di forza:
- Holding companies centralize ownership and optimize tax and risk.
- Jurisdiction choice is critical for legal compliance and tax efficiency.
- Costs, setup, and substance requirements vary widely between countries
- Proper planning ensures holding companies remain profitable and fully legal.
I miei recapiti sono hello@adamfayed.com e WhatsApp +44-7393-450-837 se avete domande.
Le informazioni contenute in questo articolo hanno un valore puramente indicativo. Non costituiscono consulenza finanziaria, legale o fiscale e non rappresentano una raccomandazione o una sollecitazione a investire. Alcuni fatti potrebbero essere cambiati dal momento della stesura.
What does a holding company mean?
A holding company is a business entity created primarily to own and control other companies or assets rather than conduct day-to-day operations.
Its main function is to centralize ownership, manage equity stakes, and receive dividends, interest, or capital gains.
Holding companies allow investors to simplify governance, protect assets, and consolidate profits across multiple subsidiaries.
Where makes the best place to set up a holding company?
The best place to set up a holding company is a jurisdiction that offers tax efficiency, legal certainty, and ease of administration.
A strong jurisdiction provides:
- Favorable tax treatment on dividends, capital gains, and interest
- Extensive double tax treaty networks to reduce withholding taxes
- Political and legal stability to ensure long-term certainty
- Clear substance and economic presence rules to comply with international standards
- Ease of setup and administration including low bureaucracy and transparent corporate governance
Choosing the wrong jurisdiction can trigger unexpected taxes, compliance challenges, or limited access to treaties, making the jurisdiction choice one of the most important decisions for investors.
Where is the best country to establish a holding company?
The best countries to set up a holding company in 2026 are the Netherlands, Luxembourg, Switzerland, Singapore, EMIRATI ARABI UNITI, Ireland, Hong Kong, and Malta, each offering different legal frameworks, tax outcomes, and substance requirements.
1. Netherlands
The Netherlands operates under a civil law system with a long-established participation exemption regime embedded in Dutch corporate tax law and supported by one of the world’s largest tax treaty networks.
Pros: Extensive tax treaty network, participation exemption on dividends and capital gains, strong legal certainty.
Cons: Increased substance requirements, higher compliance costs, closer tax authority scrutiny.
2. Luxembourg
Luxembourg’s holding company structures are governed by a sophisticated civil law framework that explicitly supports international investment holding and financing activities.
Pros: Well-established holding regimes, strong treaty access, flexible corporate structuring options.
Cons: Complex setup, rising substance expectations, relatively high professional fees.
3. Switzerland
Switzerland’s corporate tax system is governed at both federal and cantonal levels, allowing holding companies to benefit from preferential cantonal regimes subject to substance and activity location.
Pros: Political stability, favorable cantonal tax regimes, strong investor protection.
Cons: Not an EU member, substance requirements vary by canton, higher operating costs.
4. Singapore
Singapore operates under a common law system with a clear, investor-friendly Companies Act and strong enforcement of economic substance and tax residency rules.
Pros: Efficient corporate framework, low withholding taxes, strong reputation in Asia.
Cons: Substance requirements are strictly enforced, limited benefits without regional activity.
5. United Arab Emirates
The UAE’s holding company framework is governed by federal corporate law and free zone regulations, with increasing alignment to international tax standards following the introduction of corporate tax rules.
Pros: No or low corporate tax for qualifying holding structures, fast setup, strategic location.
Cons: Treaty benefits can be limited without substance, regulatory changes still evolving.
6. Ireland
Ireland’s holding company regime is anchored in EU law and domestic tax legislation, with participation exemptions and strong protections for shareholder rights.
Pros: EU access, participation exemptions, transparent and well-regulated system.
Cons: Corporate tax compliance can be complex, substance requirements are increasing.
7. Hong Kong
Hong Kong follows a territorial tax system under a common law framework, taxing only locally sourced profits while enforcing growing substance and anti-avoidance rules.
Pros: Territorial tax system, simple administration, strong access to Asian markets.
Cons: Reduced treaty advantages, increased scrutiny on offshore income and substance.
8. Malta
Malta’s holding company regime is governed by EU corporate law and a full imputation tax system, allowing refunds of corporate tax to shareholders under specific conditions.
Pros: EU jurisdiction with participation exemptions and refundable tax credit system.
Cons: Tax refunds add administrative complexity, reputational considerations for some investors.
What is the cheapest country to set up a holding company?
The cheapest country to set up a holding company is generally Seychelles, with Estonia being the lowest-cost option within the EU.
Seychelles offers very low incorporation and annual renewal costs, no minimum capital requirements, and limited ongoing compliance for standard holding structures.
Estonia can be inexpensive to establish initially through its e-Residency system, but mandatory accounting, reporting, and potential VAT obligations often make it more costly over time.
As a result, Seychelles is typically cheaper for pure holding companies focused on cost efficiency, while Estonia is chosen for regulatory credibility and EU access rather than minimum cost.
What is a benefit of a holding company structure for investors?
The main benefit of a holding company is centralized ownership and control, allowing investors to manage multiple subsidiaries efficiently.
Additional advantages include:
- Simplified dividend collection and reinvestment
- Capital gains optimization on asset disposals
- Risk isolation between subsidiaries
- Enhanced ability to raise capital or sell subsidiaries without disrupting other parts of the business
What are the tax advantages of a holding company?
The main tax advantage of a holding company is the ability to receive dividends and capital gains with reduced or no additional taxation.
Holding companies often offer further tax planning benefits, such as:
- Participation exemptions on dividends and capital gains
- Reduced or zero withholding taxes under favorable treaties
- Ability to defer corporate income taxes until repatriation
- Consolidation of losses across subsidiaries for offsetting purposes
The actual benefits depend heavily on jurisdiction selection, compliance with substance requirements, and alignment with international tax regulations.
What are the cons of a holding company?
The main disadvantages of a holding company are higher costs, increased compliance, and reduced flexibility.
While advantageous, holding companies have potential disadvantages such as:
- High setup and maintenance costs, especially in well-regulated jurisdictions
- Complex compliance obligations, including reporting and substance requirements
- Limited flexibility if jurisdictions change tax laws or treaties
- Risk of double taxation if improperly structured or in non-treaty countries
Investors must weigh the benefits against the administrative burden and ongoing costs.
Is a holding company profitable?
A holding company itself does not generate profits; it derives income from its subsidiaries.
Profitability depends on the performance of underlying businesses and the efficiency of dividend, interest, or capital gain flows.
For structured portfolios, holding companies can enhance net returns by reducing taxes and centralizing control.
Is a holding company legal?
Yes, holding companies are completely legal worldwide, provided they comply with local corporate laws, tax regulations, and international reporting standards.
Legal issues arise only when a holding company is used for tax evasion or opaque offshore activities, which modern transparency rules aim to prevent.
How to properly set up a holding company?
You properly set up a holding company by choosing the right jurisdiction and structuring it to meet tax, legal, and substance requirements from the start.
1. Choose the right jurisdiction based on tax treatment, legal stability, treaty access, and substance rules.
2. Define the company structure including shareholders, subsidiaries, and board composition.
3. Register the company with local authorities and obtain any required licenses.
4. Meet substance requirements such as local offices, staff, directors, or decision-making presence.
5. Implement governance and accounting systems to ensure transparency, reporting compliance, and long-term sustainability.
Conclusione
Holding companies remain a powerful structuring tool in 2026, but their effectiveness depends far more on jurisdiction choice and execution than on the concept itself.
Tax benefits, treaty access, and legal protection only work when substance rules and long-term compliance are taken seriously.
For investors with international operations or multi-country assets, a well-planned holding company can improve efficiency and control, while a poorly structured one can quickly become costly and restrictive.
Domande frequenti
What is the best country to open an LLC?
Countries with flexible corporate laws, low setup costs, and favorable taxation such as Delaware (US), Singapore, or the UAE are commonly chosen for LLCs.
Which country is best to start your own business?
Singapore, Estonia, and the United Arab Emirates are among the best countries to start your own business.
They combine fast company setup, competitive tax regimes, and strong access to international markets, making them especially attractive for globally focused entrepreneurs.
What tax does a holding company pay?
A holding company typically pays little to no tax on dividends and capital gains when participation exemptions apply.
Other taxes depend on the jurisdiction and may include corporate income tax on non-exempt profits and withholding tax on outbound dividends.
What are the rules of a holding company?
Holding company rules typically require majority ownership of subsidiaries, proper board governance, audited financial reporting, and compliance with local economic substance laws.
Most jurisdictions also impose tax filing obligations, anti-avoidance rules, and disclosure requirements to ensure the holding company has genuine operational presence rather than being a purely passive shell.
What are the limitations of a holding company?
A holding company is limited by higher administrative costs, strict compliance requirements, and dependence on subsidiary performance.
These constraints can reduce flexibility and increase risk if the underlying businesses underperform or regulations change.
Siete afflitti dall'indecisione finanziaria?
Adam è un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.
