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Cyprus has an extensive double tax treaty network. In most of the cases, incoming dividends received by a Cyprus holding company from its foreign subsidiary are either exempt from, or subject to, reduced withholding taxes in the subsidiary’s jurisdiction, while outward dividends paid by a Cypriot company to non-tax residents of Cyprus (companies and individuals), do not suffer any withholding tax in Cyprus.

The main purpose of these treaties is the avoidance of double taxation of income earned in any of these countries. Under these agreements, a credit is usually allowed against the tax levied by the country in which the tax payer resides, for taxes levied in the other treaty country, and as a result the tax payer pays no more than the higher of the two rates. Kindly click the pdf icon below to download the list of double tax treaties that Cyprus has enacted with third countries, as well as the corresponding rates of withholding tax.

Cyprus Double Tax Treaties