Cyprus has emerged as a prominent global financial hub, attracting businesses and entrepreneurs from across Europe, the Middle East, Asia, and beyond. These entities leverage Cyprus for their international transactions and entrepreneurial pursuits.
A significant advantage lies in the extensive double tax treaty network, crafted in alignment with the OECD model tax treaty. These treaties, when coupled with the European Union Parent-Subsidiary and Interest & Royalties directives, position Cyprus as an ideal destination for global business interactions.
In all scenarios, the prevailing taxation rate is determined by double tax treaties and EU directives, superseding domestic tax laws if the taxation rate is lower. Notably, payments of dividends and interest to non-residents benefit from exemption from withholding tax in Cyprus, subject to limited exceptions (e.g. payments to jurisdictions on the EU list of non-cooperative jurisdictions).
Key advantages of the Cyprus treaty network
- Treaties with 65+ countries aligned with the OECD model
- Full application of the EU Parent-Subsidiary Directive
- The EU Interest & Royalties Directive applies
- No withholding tax on dividends and interest paid to non-residents (limited exceptions apply)
- Treaty rates supersede domestic rates wherever lower
- Long-established treaties across Europe, the Middle East, and Asia
Countries with which Cyprus has tax treaties
The treaty network spans every other EU member state as well as major non-EU jurisdictions including the United Kingdom, India, South Africa, Canada and the UAE — which is what makes Cyprus an effective European gateway for international structuring.
See the full list of treaty countries, grouped by region and compiled from the Ministry of Finance register.