On 1 June 2021, the Republic of Cyprus and The Netherlands have for the first time signed an agreement for avoidance of double taxation.

The treaty has not yet been ratified into the Cyprus tax legislation, although it is expected to be once certain legal proceedings take place.

The treaty will regulate the tax treatment of transactions between the two countries, providing stability and confidence to the investors. It will also contribute to the additional development of economic and trade relations between the two countries and strengthen and promote investment opportunities.

The treaty is based on the OECD Model Convention for the Elimination of Double Taxation on Income and on Capital and incorporates all the minimum standards of the Base Erosion and Profit Shifting Action Plans.

The expansion of the Double Tax treaty network of Cyprus is expected to further contribute to the promotion of Cyprus as an International Business Center.

As always, M. Target Group specialists remain at your disposal should you require any further information, clarification or professional assistance with any tax matter.