Double Taxation Treaties
There is no withholding tax on dividends and interest paid from Cyprus and no withholding tax on royalty payments for use of the rights outside Cyprus. Possible use can also be made of the EU Directives to eliminate or reduce the rates so rendering the treaty benefits redundant. Treaties will be used where EU Directives are not applicable.
Cyprus is probably the only country worldwide which is considered a tax incentive country and at the same time offers important international tax planning opportunities and advantages through its wide double tax treaty network.
The countries with which Cyprus has signed double tax treaties are shown in the table below. For further clarifications please contact our office here.
Management and control for treaty purposes
In order that a Cyprus company may be entitled to take advantage of a Double Tax Treaty, it should be considered resident in Cyprus. For the purpose of most treaties a Cypriot company may be deemed resident in Cyprus if the majority of its directors reside in Cyprus, board meetings take place in Cyprus and generally the decision making is in Cyprus.
Cyprus Tax Treaties
| State | Date of Signature Treaty/Protocol/Note | Date of entry into force | Date of Publication in the Official Gazette of the Republic (Number and date) | |
|---|---|---|---|---|
| 1 | Austria (new agreement) | 20/03/1990 21/05/2012 |
10/11/1990 11/01/2013 |
2500 – 27/04/1990 4160 – 05/10/2012 |
| 2 | Bulgaria | 30 /10/ 2000 | 03 /01/ 2001 | 3461 – 30 /12/ 2000 |
| 3 | Belarus | 29 / 05/ 1998 | 12 /02/ 1999 | 3273- 09 /10/ 1998 |
| 4 | Belgium | 14 /05/ 1996 | 08 /12/ 1999 | 3365 – 19 /11/ 1999 |
| 5 | Canada | 02 /05/ 1984 | 03 /09/ 1985 | 2053- 31 /05/ 1985 |
| 6 | China | 25 /10/ 1990 | 05 /10/ 1991 | 2578 – 22 /02/ 1991 |
| 7 | Denmark Treaty Notes New Agreem.* | 26 /05/ 1981 11 /10/ 2010 |
10 /04/ 1982 07 /09/ 2011 |
1704 – 17 /07/ 1981 4145- 05 /09/ 2011 |
| 8 | Egypt | 18 /12/ 1993 | 14 /03/ 1995 | 2865 – 11 /03/ 1994 |
| 9 | France | 18 /12/ 1981 | 01 /04/ 1983 | 1468 – 09 /07/ 1982 |
| 10 | Germany new Agreement | 09 /05/ 1974 18 /02/ 2011 |
11 /10/ 1977 16 /12/ 2011 |
1199 – 27 /06/ 1975 4145 – 05 /09/ 2011 |
| 11 | Greece | 30 /03/ 1968 | 16 /01/ 1969 | 651 – 10 /05/ 1968 |
| 12 | Hungary | 30 /11/ 1981 | 24 /11/ 1982 | 862 -07 /05/ 1982 |
| 13 | India | 13 /06/ 1994 | 21 /12/ 1994 | 2921 – 04 /11/ 1994 |
| 14 | Ireland | 24 /09/ 1968 | 12 /07/ 1970 | 726 – 19 /05/ 1969 |
| 15 | Italy Treaty Protocol (Additional Protocol) | 24 /04/ 1974 04 /06/ 2009 |
09 /06/ 1983 23/11/2011 |
1586 – 05 /09/ 1980 4125 – 04 /06/ 2010 |
| 16 | Kuwait (New Agreement) | 15 /12/ 1984 05 /10/ 2010 |
25 /09/ 1986 30 /08/ 2013 |
2026 – 18 /01/ 1985 4145 – 05 /09/ 2011 |
| 17 | Malta | 22 /10/ 1993 | 11 /08/ 1994 | 2860 – 25 /02/ 1994 |
| 18 | Mauritius | 21 /01/2000 | 12 /06/ 2000 | 3410 – 02 /06/ 2000 |
| 19 | Norway (new agreement) | 02 /05/ 1991 24 /02/ 2014 |
01/01/ 1995 08 /07/ 2014 |
11/06/ 1996 4180 – 20 /06/ 2014 |
| 20 | Poland (new agreement) | 04 /06/ 1992 22 /03/ 2012 |
09 /07/ 1993 11 /01/ 2013 |
2735 – 04 /09/ 1992 4156 – 30 /03/ 2012 |
| 21 | Romania | 16 /11/ 1981 | 08 /11/ 1982 | 1757- 26 /02/ 1982 |
| 22 | Russia (Amendment Protocol) | 05 /12/ 1998 07 /10/ 2010 |
17 /08/ 1999 02 /04/ 2012 |
3306 – 26 /02/ 1999 4145 – 05 /09/ 2011 |
| 23 | South Africa | 01 /04/ 2015 (26 /11/ 1997) |
18 /09/ 2015 08 /12/ 1998 |
4195 – 08 /05/ 2015 3214 – 16 /01/ 1998 |
| 24 | Sweden | 22 /10/1988 | 14 /11/ 1989 | 2377 – 20 /01/ 1989 |
| 25 | Syria | 15 /03/ 1992 | 22 /02/ 1995 | 2863 – 04 /03/ 1994 |
| 26 | Singapore | 24 /11/ 2000 | 08 /02/ 2001 | 3641 – 30 /12/ 2000 |
| 27 | Thailand | 27 /10/ 1998 | 04 /04/ 2000 | 3394 – 17 /03/ 2000 |
| 28 | United Kingdom Treaty Protocol | 20 /06/ 1974 02/04/1980 |
18 /03/ 1975 15/12/1980 |
1107 – 05 /07/ 1974 |
| 29 | USA | 19 /03/ 1984 | 31 /12/ 1985 | 1944 – 04 /04/ 1984 |
| 30 | Serbia* | 29 /06/ 1985 | 08 /09/ 1986 | 2073 – 23 /08/ 1985 |
| 31 | Montenegro* | 29 /06/ 1985 | 08 /09/ 1986 | 2073 – 23 /08/ 1985 |
| 32 | Slovenia*(New Agreement) | 12 /10/ 2010 | 14 /09/ 2011 | 4145 – 05 /09/ 2011 |
| 33 | Slovakia** | 15 /04/ 1980 | 30 /12/ 1980 | 1599 – 03 /05/ 1980 |
| 34 | Czech Republic (New Agreement) | 15 /04/ 1980 28 /04/2009 |
30 /12/ 1980 26 /11/ 2009 |
1599 – 03 /05/ 1980 4114 – 13 /11/ 2009 |
| 35 | Azerbaijan*** | 29 /10/ 1982 | 26 /08/1983 | 26 /11/ 1982 |
| 36 | Armenia | 17 /01/ 2011 | 19 /09/ 2011 | 4145 – 05 /09/ 2011 |
| 37 | Moldova | 28 /01/2008 | 03 /09/ 2008 | 4098 – 29 /08/ 2008 |
| 38 | Kyrgyzstan | 29 /10/ 1982 | 26 /08/ 1983 | 26 /11/ 1982 |
| 39 | Uzbekistan*** | 29 /10/ 1982 | 26 /08/ 1983 | 26 /11 1982 |
| 40 | Ukraine*** (new agreement) | 29 /10/ 1982 08 /11/ 2012 11/12/2015 |
26 /08/ 1983 01 /01/ 2014 |
26 /11/ 1982 4167 – 22 /03/ 2013 4203 – 23/12/2015 |
| 41 | Lebanon | 18 /02/ 2003 | 14 /04/ 2005 | 08 /04/ 2005 |
| 42 | Seychelles | 28 /06/ 2006 | 27 /10/ 2006 | 25 /10/ 2006 |
| 43 | San Marino | 27 /04/2007 | 18 /07/ 2007 | 4088 – 13 /06/ 2007 |
| 44 | Quatar | 11/11/ 2008 | 20 /03/ 2009 | 4099 – 14 /11/ 2008 |
| 45 | United Arab Emirates | 27 /02/ 2011 | 01 /01/ 2014 | 4145 – 05 /09/ 2011 |
| 46 | Estonia | 15 /10/ 2012 | 08 /10/ 2013 | 4164 – 01 /02/ 2013 |
| 47 | Finland | 15 /11/ 2012 | 27 /04/ 2013 | 4167 – 22 /03/ 2013 |
| 48 | Portugal | 19 /11/ 2012 | 01 /01/ 2014 | 4167 – 22 /03/.2013 |
| 49 | Bosnia* | 29 /06/ 1985 | 08 /09/ 1986 | 2073 – 23 /08/ 1985 |
| 50 | Lithuania | 21 /06/ 2013 | 17 /04/ 2014 | 4173 – 04 /12/ 2013 |
| 51 | Spain | 14 /02/ 2013 | 28 /05/2014 | 4167 – 22 /03/ 2013 |
| 52 | The States of Guernsey | 15 /07/ 2014 (in Cyprus) 29 /07 (in Guernsey) |
04 /03/ 2015 | 4182 – 14 /08/ 2014 |
| 53 | Swiss Confederation | 25 /07/ 2014 | 15 /10/ 2015 | 4181 – 30 07/ 2014 |
| 54 | Iceland | 13 /11/ 2014 | 22 /12/ 2014 | 4191 – 19 /12/ 2014 |
| 55 | Kingsdom of Bahrain | 9 /03/ 2015 | 26 / 04/ 2016 | 4193 – 20 /03/ 2015 |
| 56 | Open Sans | 13 /05/ 2015 | 04 /01/ 2016 | 4196 – 29 /05/ 2015 |
| 57 | Iran | 4 /08/ 2015 | 4198 – 25 /08/ 2015 | |
| 58 | Ethiopia | 30 /12/ 2015 | 4204 – 18 /01/ 2016 | |
| 59 | Latvia | 24/ 05/2016 | 27/10/2016 | 4211 – 03 /06 /2016 |
| 60 | Jersey | 11/ 7/2016 | 4213 – 5 /08 /2016 |
Notes
*7 Denmark – The existing Convention shall cease to have effect as from 1.1.2012
* The treaty between Cyprus and the Socialist Federal Republic of Yugoslavia is still in force.
** The treaty between Cyprus and the Czechoslovak Socialist Republic is still in force
***The treaty between Cyprus and the Union of Soviet Socialist Republics is still in force.