On 25 July 2014 Switzerland and Cyprus signed a new agreement for the avoidance of double taxation (DTA) with respect to taxes on income and capital. It is the first DTA between the two countries, and will contribute to the development of bilateral economic relations. The agreement still has to be approved by both countries before it can come into force.
The new agreement closely follows the 2010 OECD Model Convention, with only minor modifications, and the Protocol to the agreement clarifies certain detailed provisions.
As well as being one of the world's most important financial centres Switzerland is the base for many ultra-high net worth individuals with business and personal interests in Cyprus. The new DTA with Switzerland will be a valuable addition to Cyprus's extensive treaty network and it is hoped that the remaining steps required to bring the new agreement into effect can be achieved quickly.
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