Double Tax Treaties

Cyprus has concluded an impressive and expanding number of treaties for the avoidance of double taxation of income earned in any of the treaty countries.

The withholding taxes relating to the 27 treaties currently in place are outlined in the table of double tax treaties.

The existence of these treaties combined with the low tax paid by international business entities offer tremendous possibilities for international tax planning through Cyprus, in the light of the following:

• Any tax paid in a country with which Cyprus has a treaty is deducted from the Cyprus tax payable on the same income.
• International business entities are not required to withhold tax on payments made from Cyprus, in respect of dividends, interest and royalties.