Cyprus and Guernsey have signed a comprehensive double taxation
agreement. The agreement was signed on behalf of the Republic of
Cyprus on 15 July and on behalf of the States of Guernsey on 29
July. The agreement will enter into force once the necessary
ratification procedures have been completed and will have effect
from the following 1 January.
The agreement provides for dividends, interest and royalties paid
by a resident of Guernsey to a recipient in Cyprus to be taxable
only in Cyprus, and vice-versa.
The 2004 agreement on taxation of savings income between Cyprus
and Guernsey will continue in force, but the double taxation
agreement will be much more beneficial to taxpayers once it takes
effect.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.