Cyprus: Cyprus expands double tax treaty network with Lithuania agreement

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

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

Cyprus: Cyprus expands double tax treaty network with Lithuania agreement

charalambous.jpg

Katerina Charalambous

A double tax treaty (DTT) was signed between Cyprus and Lithuania in June 2013. The treaty, which follows the OECD Model Convention for the avoidance of Double Taxation on Income and on Capital, has been ratified by the two contracting states and has entered into force as of January 1 2015. According to the DTT there is no withholding tax on dividend payments on the basis that the receiving company is the beneficial owner of said income and owns at least 10% of the capital in the dividend paying company. In a different case a 5% withholding shall be applicable. Further, no withholding tax shall be suffered on interest payments from one contracting state to the other, and a 5% withholding tax on royalty payments.

It should also be noted that capital gains arising from the disposal of immovable property shall be taxed in the contracting state that the property is situated. However, gains arising from the disposal of shares in companies that hold property shall be taxable in the state of residence of the company disposing the shares.

DTTs aim to promote and enhance the commercial and economic interaction between states by clearly defining where tax shall arise and by allocating the taxing rights between the contracting states. Cyprus continues to expand its DTT network as a means to attract further investment and become a more accessible and transparent jurisdiction.

Katerina Charalambous (katerina.a.charalambous@eurofast.eu)

Eurofast, Cyprus Office

Tel: +357 22 699 222

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Countries which care about fair taxation of tech multinationals and equitable global distribution of wealth should back the UN’s tax framework, writes economist Abdelmalek Riad
The cuts disproportionately affected staff in certain positions, the report also found; in other news, MHA announced the €24m acquisition of Baker Tilly South East Europe
The plan aims to improve the efficiency, transparency, and effectiveness of direct tax administration in India
Meanwhile, South Africa’s finance minister has accepted a court decision on suspending a VAT increase and US President Donald Trump mulls a 100% tariff on foreign films
Jaime Carey speaks about the benefits of his tax background, DEI values, the use of AI for a smarter legal practice, and other priorities that will define his presidency
Historically low levels of attrition over consecutive years made a ‘difficult decision’ necessary, PwC has reportedly said
WTS Global is also vetting new potential member firms in Algeria, Cote D’Ivoire and Benin, Kelly Mgbor tells ITR in an exclusive interview
The scope of qualifying pillar two tax credits could reportedly be broadened; in other news, hundreds of IRS appeals staff are to resign
For many taxpayers, the prospect of long-term certainty that a bilateral APA offers can override concerns about time, cost and confidentiality
Levine, who served under the Joe Biden administration, led the US’s negotiations on the OECD’s two-pillar solution
Gift this article