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Cyprus - Andorra Double Tax Treaty

The double tax treaty with Andorra which was signed on 18 May 2018 will come into effect on 1st January 2020.

The main provisions of the treaty are as follows: -

  • Dividends, interest and royalties - no withholding tax will be levied on dividend interest or royalty payments.
  • Capital gains – Cyprus retains the exclusive taxing rights on disposal of shares made by Cyprus tax residents, with some exceptions.
  • Principal purpose test (PPT) – the treaty incorporates the BEPS project action 6 which provides that a benefit under the treaty shall not be granted if obtaining that benefit was one of the principal purposes of the arrangement or the transaction taking place.

Latest news

Changes in the withholding payment of Special Defense and GESY contributions

Changes in the withholding payment of Special Defense and GESY contributions on payable rents of legal entities. The Cyprus tax authorities inform that a legal entity which pays rent to an individual to 30 of June and to 31 of December of a given year, is now liable to pay the special contributio...…

Published: Wednesday 28 February, 2024

Revised Double Tax treaty between Cyprus and France

A revised treaty for avoidance of double taxation between Cyprus and France was signed on 11 December 2023 replacing the previous Treaty of 1981. The main provisions of the Treaty are as follows: Dividends: 0% withholding tax if the beneficial owner of the dividend is a com...…

Published: Wednesday 21 February, 2024

Cyprus – Croatia Double Tax Treaty

The double tax treaty between Cyprus and Croatia was signed on 17 October 2023 and ratified on 27 October 2023. Following the ratification by Cyprus, the treaty will be in effect in the year following the year in which the ratification process in the Republic of Croatia is also completed. It will...…

Published: Tuesday 23 January, 2024