NETHERLANDS: DTT with Cyprus set to take effect at end of 2023

The Dutch Parliament’s Upper House has approved a Double Tax Treaty between Cyprus and the Netherlands, which is the first of its kind. The Treaty was signed on June 1, 2021, and is expected to come into effect from January 1, 2024.

The ratification process in the Netherlands is not yet complete and will be finalized by the signature of the Treaty by the King of the Netherlands. However, the ratification process in Cyprus has been completed, and the Treaty was published in the Cyprus Government Gazette on June 4, 2021. The ratification process will be finalized upon the exchange of Notification letters.

The Double Tax Treaty aims to eliminate double taxation of income and capital gains that may arise in the two countries. It also provides for the exchange of information between the tax authorities of the two countries, which will help prevent tax evasion.

The Treaty is expected to enhance trade and investment relations between Cyprus and the Netherlands by reducing tax barriers and providing more certainty for businesses operating in both countries. The elimination of double taxation will also promote cross-border investment and encourage companies to expand their operations.

Cyprus is a popular destination for Dutch investors due to its favorable tax regime, business-friendly environment, and strategic location. The country has a well-established legal system based on the British legal system and offers a range of tax incentives and benefits to businesses.

The Netherlands, on the other hand, is a major player in the European Union and has a well-developed economy. It is home to many multinational companies, including in the technology and financial sectors.

Overall, the Double Tax Treaty between Cyprus and the Netherlands is expected to have a positive impact on both countries’ economies and enhance their trade and investment relations. It is a welcome development for businesses operating in both countries, as it will provide greater tax certainty and reduce administrative burdens.


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