Cyprus: Double tax treaty between Cyprus and Jersey enters into force

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Cyprus: Double tax treaty between Cyprus and Jersey enters into force

intl-updates

Officials of Jersey and Cyprus signed a double taxation agreement (DTA) on July 11 2016 in London. The agreement – negotiations for which had lasted since 2013 – came into force on January 1 2018.

Senator Bailhache for the government of Jersey stated that "the signing of the DTA with Cyprus continues Jersey's firm and longstanding commitment to the international standards of transparency and information exchange".

"Jersey also pursues a good neighbour policy in relation to the EU and we are therefore delighted that with the signing of the DTA we will be further strengthening our political and business relationship with an EU member state. The signing of a DTA with Cyprus is particularly welcome because we have a great deal in common as international finance centres."

The treaty generally follows the OECD model tax convention for the avoidance of double taxation on income and capital.

A brief summary of the key provisions of the DTA follows below.

Permanent establishment

The permanent establishment definition in the treaty is in line with the meaning provided in the OECD model tax convention. In particular, any building site, construction or installation project constitutes a permanent establishment only if it lasts more than 12 months.

Withholding tax rates on dividend/interest/royalty payments

The withholding tax rate on the payment of dividends, interest and royalties is 0%.

Capital gains tax

Any gains from the disposal of immovable property will be taxed in the country where the immovable property is situated.

Any gains from the disposal of shares are taxable in the country in which the seller is located.

Exchange of information

The competent authorities of the countries will exchange information considered relevant for carrying out the provisions of the DTA or to the administration or enforcement of the domestic tax laws. The provisions of Article 25 have effect eight taxable years before the entry into force of the DTA.

With the conclusion of the DTA, Jersey became Cyprus' 61st tax treaty partner.

nicolaou.jpg
christodoulou.jpg

Maria Nicolaou

Andri

Christodoulou

Maria Nicolaou (maria.nicolaou@eurofast.eu) and Andri Christodoulou (andri.christodoulou@eurofast.eu)

Eurofast Global

Tel: +357 22 699 224

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

ITR’s data has highlighted the US firm’s ambition to become America’s ‘premier’ tax player via a concerted partner recruitment strategy
Jaap Zwaan’s arrival continues a recent streak of A&M Tax investing in the region; in other news, the US and Japan struck a deal that significantly lowered tariff rates
In a world where international tax concepts rely on human activity, Leonard Wagenaar poses existential questions about the future of such ideas when AI is ever-present
France v Axa provides a practical illustration of how the burden of proof is applied in TP matters under French law, ITR also heard
In an exclusive interview with ITR, Ian Gary calls for a central public CbCR database and bemoans the US’s lack of involvement in international tax transparency
Reckitt Benckiser is to divest its Essential Home business, which includes more than 70 brands, to private equity firm Advent International
In the first of a new series of weekly opinion pieces, ITR Editor Tom Baker reflects on the OECD’s attempts to sanitise the US’s brazen pillar two negotiations
The threat of 50% tariffs on Brazilian goods coincides with new Brazilian legal powers to adopt retaliatory economic measures, local experts tell ITR
The country’s chancellor appears to have backtracked from previous pillar two scepticism; in other news, Donald Trump threatened Russia with 100% tariffs
In its latest G20 update, the OECD also revealed tense discussions with the US where the ‘significant threat’ of Section 899 was highlighted
Gift this article