The Netherlands and Cyprus signed a DTT

The Hague, The Netherlands – The Upper House of the States General of the Netherlands has approved the ratification of a favorable tax treaty with Cyprus. The treaty, signed this year and involving the exchange of letters of ratification, will enter into force on January 1, 2024. The agreement provides for zero tax rates on dividends, interest and royalties with a minimum 5% shareholding for 365 days.

This taxation agreement between the Netherlands and Cyprus reflects the desire of both countries to strengthen their economic relations and attract investment. Both countries are members of the European Union and active participants in the international economic scene.

For businesses and investors, this agreement means greater stability and predictability. With zero tax rates on dividends, interest and royalties, companies involved in cross-border transactions between the Netherlands and Cyprus will be able to reduce their tax liability and increase their competitiveness.

The agreement also promotes investment and strengthens business ties between the two countries. It creates favorable conditions for Dutch companies wishing to invest in Cyprus and Cypriot companies seeking to expand into the Dutch market.

The ratification of the agreement by the Upper House of the States General of the Netherlands confirms the broad support for this agreement. The Government of the Netherlands expressed its confidence that the taxation agreement with Cyprus will benefit both countries and contribute to the further development of their economic relations.

The text of the agreement can be found here: https://mof.gov.cy/assets/modules/wnp/articles/202206/1148/docs/netherlands_en.pdf