The beginning of 2014 was remarkable for the Republic of Cyprus because five double taxation avoidance agreements took effect. The countries that have expanded their economic relationship with Cyprus are Portugal, Spain, Finland, Estonia and Ukraine. All countries except Ukraine had implemented brand new agreements but after a long wait. The earliest was signed with Estonia in October 2012.
The Cyprus double taxation agreement with Ukraine is worth a separate mention because it replaces the already existing one signed between Cyprus and USSR, and later adopted following the collapse of the Soviet Union. The new document updates the agreement and keeps the advantages that were present in the former deal. For instance, movable property is taxed only in the country where the owner is resident; and in Cyprus, the selling of shares is untaxed except when the property is from Cyprus.
The new agreements are expected to expand the ties between countries’ economies and give a boost to investment activities.
In the nearest future one can expect Cyprus signing of DTA’s with Switzerland, Norway and Malaysia.