Quick Answer

Cyprus has signed 65+ double taxation agreements (DTAs) covering most major economies. Key treaties include those with the UK, Germany, France, Spain, USA, Russia, and China. These treaties prevent double taxation on income, dividends, interest, and royalties, and typically reduce withholding taxes at source. The treaty network is one of the largest per capita in the EU.

Key Facts 2026

Total treaties in force65+
UK: dividends withholding0% (10%+ holding) / 15% (other)
UK: interest withholding0%
Germany: dividends withholding5% (25%+ holding) / 15% (other)
USA: treaty statusNo treaty in force (unique - one of few countries without)
Russia: treaty statusSuspended March 2023
Interest withholding (most treaties)0%
Royalties withholding (most treaties)0%

Cyprus Double Tax Treaties: 60+ Countries Covered

Cyprus has one of the most extensive treaty networks in the EU with over 60 double tax agreements. They prevent you from being taxed twice on the same income.

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Frequently Asked Questions

How many double tax treaties does Cyprus have?
Cyprus has signed double tax treaties with over 60 countries, one of the largest treaty networks in the EU.
Does Cyprus have a tax treaty with the UK?
Yes. The Cyprus-UK treaty covers residence tie-breakers, pension income, employment income, and investment income. UK citizens who become Cyprus tax residents use this treaty to determine where each type of income is taxed.
How do I prove I am a Cyprus tax resident for treaty purposes?
Obtain a Tax Residency Certificate from the Cyprus Tax Department by filing form TD2001. The certificate is issued annually and confirms your residence status to foreign tax authorities.
Does Cyprus have a tax treaty with the USA?
No comprehensive income tax treaty exists between Cyprus and the USA. US persons living in Cyprus must still comply with US tax filing requirements and use the Foreign Tax Credit to avoid double taxation.
How does a Cyprus DTT affect dividend withholding tax?
Cyprus imposes 0% withholding tax on dividends paid to non-residents domestically. Under treaties, the source country may further reduce its withholding on dividends paid to Cyprus residents. For example, a Cyprus resident receiving dividends from a German company may benefit from a reduced German withholding rate under the Cyprus-Germany treaty.
Do I need a tax residency certificate to use treaty benefits?
Yes. Foreign payers of income require proof of your Cyprus tax residency (the Tax Residency Certificate) to apply treaty withholding rates instead of their domestic rates.

Related Guides

Sources

Cyprus Tax Department - List of Double Tax Treaties. Cyprus-UK Double Tax Convention. Cyprus-Germany Double Tax Convention. Updated: April 2026.

Frequently Asked Questions

What does the UK-Cyprus double tax treaty cover?

The UK-Cyprus Double Tax Treaty (signed 1974, updated since) covers: dividends - Cyprus companies pay 0% withholding to UK residents under Non-Dom (only 2.65% GHS applies); interest - maximum 10% withholding between the two countries; capital gains - taxed only in the country of residence, so a UK person selling Cyprus shares pays UK CGT not Cyprus CGT; pensions - UK state pension received by a Cyprus resident is taxed only in Cyprus.

The treaty uses the OECD model and contains an exchange of information clause. Post-Brexit, the treaty remains fully in force as it is bilateral, not EU-based. UK citizens in Cyprus can still rely on it for all cross-border income flows.

Does the US-Cyprus tax treaty have a Limitation on Benefits (LOB) clause?

The US-Cyprus DTT (signed 1984) contains an LOB article limiting treaty benefits to qualified persons: broadly, individuals resident in either country, publicly listed companies, and companies where at least 50% of shares are owned by US or Cyprus residents. A base erosion test also applies: no more than 50% of gross income can be paid to non-US or non-Cyprus residents as deductible payments.

If you fail the LOB test, you can still claim treaty benefits if you demonstrate your activities and income have sufficient nexus to Cyprus. Always verify current status with a Cyprus tax adviser, as the US-Cyprus treaty was under renegotiation.

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