In order to avoid double taxation, Cyprus and Switzerland signed an Income and Capital Tax Treaty on 25 July 2014. The treaty will enter into force after the two countries exchange ratification instruments.

Under the treaty, the following withholding taxes will apply:

  • Dividends:
    • 0% if the beneficial owner is a company (other than a partnership) whose capital is divided, in whole or in part, into shares and which holds directly at least 10% of the capital of the company paying the dividends for an uninterrupted period of at least 1 year.
    • 0% if the beneficial owner is a pension fund or other similar institution offering pension schemes in which individuals can participate for their retirement pension.
    • 15% in all other cases.
  • Interest: 0%
  • Royalties: 0%