Cyprus: Tax Treaties

Cyprus has cut its dividend tax rate from 17% to 5% starting January 2026, but the reduction applies only to profits earned from that date forward.

The governments of the Hong Kong Special Administrative Region (HKSAR) and the Republic of Cyprus announced the signing of a comprehensive double taxation agreement (DTA) on 12 June aimed at eliminating double taxation on income and combating tax evasion and tax avoidance.

Cyprus has completed the technical requirements for Schengen accession, but political approval remains pending. What would membership mean for residence permits, visa issuance, and cross-border mobility—and what common misconceptions about tax residency need to be addressed before businesses and individuals plan their next move?

Cyprus has introduced comprehensive defensive tax measures targeting payments to EU blacklisted and low-tax jurisdictions, fundamentally changing how international groups structure their Cyprus operations.

Major UK tax changes took effect from April 2025. These include the introduction of a residence‑based tax system replacing the non‑dom regime, changes to capital gains tax reliefs, the treatment of furnished holiday lets as standard property, and the continued freezing of personal allowances and thresholds for the 2025/26 tax year.

An EU national, operating a successful consultancy company, sought a jurisdiction that combined tax efficiency, EU credibility, and a high quality lifestyle. With an international client base and no dependence on a physical location, Cyprus emerged as a natural choice for both business relocation and personal residency. The individual also held a personal investment portfolio which was discretionary managed by an EU Financial Institution.

Cyprus continues to attract international entrepreneurs, holding structures, and investment vehicles due to its business-friendly regulatory framework, EU membership, and access to a wide network of double tax treaties.

Cyprus stands as a premier maritime hub, offering one of the world's most competitive ship registries. Its strategic position at the crossroads of Europe, Asia, and Africa, combined with a robust legal framework...

The Cyprus House of Representatives approved legislation, on 10 April, introducing defensive measures against payments made to entities resident in low-tax jurisdictions...