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Cyprus signs a new double tax treaty with Spain

20 Feb 2013

On 14 February 2013 Cyprus and Spain signed a double tax treaty. The treaty will come into force three months after its ratification by the two countries and for taxes on income and capital at the beginning of the year following thedate the treaty enters into force.

The main provisions of the treaty are the following:

Withholding Tax on Dividends:

- 0% withholding tax if the beneficial owner is a company (other than apartnership) holding at least 10% of the capital of the company paying the dividend

- 5% in all other cases

Withholding Tax on Interest:

0% Witholding Tax on Interest

Withholding Tax on Royalties:

0% Withholding Tax on Royalties

Taxation of Capital gains:

- Gains from the disposal of immovable property are taxed in the country where theimmovable property is situated

- Gains from the disposal of shares or comparable interests not listed on the StockExchange of either country (deriving more than 50% of their value from immovable property), are taxed in the country in which the immovable property is situated. For the purposes of determining the value referred to above, the domestic law of the countrywhere the immovable property is situated applies

-Gains from the disposal of any other type of shares are taxed in the country of which theseller is resident.

 

Ekkeshis Ierodiakonou Ltd:

Our firm can assist you further when the need arises with the knowledge and expertise it possesses in tax matters.