Constructive use of the Cyprus Treaties’ Network has provided considerable advantages to businesses and individuals who have chosen Cyprus for the establishment of legal entities. Tax treaties supersede local tax legislation and therefore they are useful tax-planning tools to protect businesses and individuals against double taxation of income earned in other countries. More than 60 countries are among those which have double-tax treaties with Cyprus. Several others are under discussions and negotiations. In the absence of a Double Tax Treaty, a Cyprus Company can benefit from EU Directives to reduce or eliminate withholding taxes when receiving income from an EU Country.
Unilateral tax credit on foreign taxes withheld at source is also available.For a complete list of the countries that have Double Tax Treaties with Cyprus, please follow this link.