Cyprus: Signature Of Cyprus – Guernsey Double Taxation Agreement

Cyprus and Guernsey have signed a comprehensive double taxation agreement. The agreement was signed on behalf of the Republic of Cyprus on 15 July and on behalf of the States of Guernsey on 29 July. The agreement will enter into force once the necessary ratification procedures have been completed and will have effect from the following 1 January.

The agreement provides for dividends, interest and royalties paid by a resident of Guernsey to a recipient in Cyprus to be taxable only in Cyprus, and vice-versa.

The 2004 agreement on taxation of savings income between Cyprus and Guernsey will continue in force, but the double taxation agreement will be much more beneficial to taxpayers once it takes effect.