Double Tax Treaties in Cyprus

Double taxation refers to taxes applied to the same income by at least two different jurisdictions. In order to prevent double taxation countries agree upon taxation agreements. Even if the Cypriot tax system is very advantageous for companies, Cyprus has tax treaties with other countries.

Benefits of Cypriot tax treaties

Double taxation treaties in Cyprus are meant to protect companies against the risk of having their incomes taxed twice, once in Cyprus and once in the parent company’s home state. Cypriot tax treaties also reassure the trade between nations and prevent Cypriot businesses established abroad to be subject to tax discrimination.

Cyprus offers a wide network of double taxation treaties being a credible jurisdiction due to its alignment to EU directives. Cyprus has been white listed by OECD.

These are the main factors that make Cyprus a credible investment destination. If you want to start a business and need legal advice our lawyers in Cyprus can provide you assistance in finding the best investment opportunity.

Cyprus’ tax treaties with other countries

Cyprus has double tax treaties with more than 65 countries and is presently negotiating with other countries in order to extend its double taxation network. The majority of the tax treaties are in accordance with the OECD Model Convention, but Cyprus has a double tax treaty with the United States as well, this one being adapted to the US Agreements. Among the countries Cyprus has double tax treaties with we can find Austria, Belgium, Germany, France, Greece, Italy, Malta, Poland, The Czech Republic, Russia (treaty largely suspended by Russia since August 2023), Estonia, Canada, Kuwait, Egypt, India, Qatar.

Cyprus has also signed tax-sparing agreements with 15 countries that include Canada, Germany, Greece, India, The United Kingdom, and Syria.

Other Cypriot tax agreements

Cyprus has agreements that promote and protect investments with more than 20 countries, as well. These agreements are meant to protect companies against discrimination, to protect the capital and profits that need to be sent back to the country in cases of expropriation or any negative outcome from doing business in Cyprus.

The Securities and Exchange Commission in Cyprus has also signed a multilateral Memorandum of Understanding (MoUs) (including the IOSCO and ESMA MoUs) with supervisory authorities of the EU and other countries in order to cooperate in the supervision of securities markets. Cyprus has also signed a Memorandum of Understanding with Qatar regarding the monitoring of financial institutions.

In 2009 Cyprus adhered to the Council of Europe Convention on Money Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism.

If you want to open a company, you can contact our Cyprus tax attorneys in order to be updated about the latest changes in the Cypriot provisions about double taxation.