The first-time double tax treaty (DTT) between Cyprus and Barbados signed in May 2017 is effective as from 1 January 2018 as per a recent update of the Cyprus Ministry of Finance.

The DTT provides for a 0% withholding tax (WHT) rate on payments of dividends, interest and royalties.

Further, under the DTT, Cyprus retains the exclusive taxing rights on disposals by Cyprus tax residents of shares in companies (including companies holding Barbados located immovable property) except in cases where the value of the shares relates directly or indirectly to certain offshore rights/property relating to exploration or exploitation of the seabed or subsoil or their natural resources located in Barbados.

The takeaway

This treaty further expands the Cyprus DTT network, and opens the way for new investment opportunities and trade relations between the two Countries.

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.