The Republic of Cyprus and the Kingdom of the Netherlands signed their 1st Treaty for the Elimination of Double Taxation with respect to taxes on Income and the Prevention of Tax Evasion and Avoidance in Nicosia.
The Treaty shall enable the full relief of withholding taxes on dividend payments to corporate investors, provided they own directly at least 5% of the share capital in a Cyprus Company paying the dividends throughout a 365-day period. Coupled with the 0% withholding tax rate for interest and royalties, the Treaty guarantees a beneficial legal framework for cross-border investments.
For the moment, there are no updates as to the time of the Treaty entering into force, since the legal framework firstly needs to be formally adopted by the Dutch Parliament whereas Cyprus completed its ratification process.
The conclusion of the Treaty reiterates the good bilateral relations between the two countries.
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