International Tax Review is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

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

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


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.


Maria Nicolaou



Maria Nicolaou ( and Andri Christodoulou (

Eurofast Global

Tel: +357 22 699 224


more across site & bottom lb ros

More from across our site

Industry groups are concerned about the shift away from the ALP towards formulary apportionment as part of a common consolidated corporate tax base across the EU.
The former tax official in Italy will take up her post in April.
With marked economic disruption matched by a frenetic rate of regulatory upheaval, ITR partnered with Asia’s leading legal minds to navigate the continent’s growing complexity.
Lawmakers seem more reticent than ever to make ambitious tax proposals since the disastrous ‘mini-budget’ last September, but the country needs serious change.
The panel, the only one dedicated to tax at the World Economic Forum, comprised government ministers and other officials.
Colombian Finance Minister José Antonio Ocampo announced preparations for a Latin American tax summit, while the potentially ‘dangerous’ Inflation Reduction Act has come under fire.
The OECD’s two-pillar solution may increase global tax revenue gains by more than $200 billion a year, but pillar one is the key to such gains due to its fundamental changes to taxing rights.
The solution to address the tax challenges arising from digitalisation and globalisation will generate more revenue than previously estimated.
The OECD has made headway in combating harmful tax practices as part of the BEPS project, according to peer reviews.
The Europe Middle East & Africa awards research cycle has now begun – don’t miss on this opportunity be recognised in 2023