Cyprus continues to expand its Double Tax Treaty network and strengthen its bilateral ties with other countries.  The conclusion of new or the revision of existing treaties, reflecting modern realities with important trading partners and emerging countries, promotes further the status of Cyprus as an important international business centre. Currently, Cyprus is considered to have one of the best treaties with certain non-EU countries like Russia, Ukraine and South Africa.

Recently concluded treaties with effect as from 2013 and 2014

During 2013 the Protocols to the existing treaties with Russia and Poland came into effect. Newly concluded or revised treaties coming into effect as from January 2014 are those with Ukraine, Portugal, Finland, Estonia and Austria. The new treaty with Spain, which has been ratified in 2013 by both countries, shall enter into force three months after the relevant notification documents are exchanged.

The new treaty with Ukraine, replacing the previously applicable treaty between Cyprus and the USSR, retains the favourable capital gains provision, whereby the taxing right for gains on disposal of shares (including those of property-rich companies) remains with the seller. This constitutes Cyprus as one of the prime routes for inward investments in Ukraine, as capital gains in Cyprus are tax exempt.

Treaties awaiting ratification or signing

The treaties with Kuwait and United Arab Emirates are awaiting ratification and the revised or new treaties with Luxembourg, Bahrain, Georgia, Monaco, Latvia, Lithuania and South Africa are pending signatures.

Treaties under negotiations

Negotiations are in progress for concluding new treaties with The Netherlands, Switzerland, Israel, Indonesia, Libya and Malaysia. Furthermore, in an effort to bring existing treaties in line with the latest OECD guidelines and other requirements, negotiations are in progress with India, Serbia, Belgium, France, Norway and Greece.

Click here for a full list and details of the Cyprus double tax treaty network.