The Double Tax Treaty, was published in the Official Gazette of the Republic of Cyprus on the 29th of May and after its ratification by both countries, it is expected to come into force on the 1st of January 2016.
The most significant provisions of the new treaty are highlighted below:
0% withholding tax on dividends payments
0% withholding tax on interest payments
0% withholding tax on royalties
Capital gains that are derived by a resident of a Contracting State from the disposal of immovable property situated in the other Contracting State may be taxed in that other State.
Capital gains that are arised from the disposal of shares are to be taxed only in the Contracting State where the alienator is resident.
Provisions for the exchange of information between the Competent Authorities.
