Recently, Cyprus has put five new double tax agreements (DTAs) into effect, including a treaty with the Ukraine which includes beneficial treatment for real estate owned through a Cyprus holding company. The country’s DTA with Russia used to include such treatment, but the Protocol signed a year ago imposed limits on real estate holding companies that take effect in 2017.
Cyprus maintains a tax-friendly environment for international holding companies, and the double tax treaties are a key element of this regime, along with its 12.5 percent corporation tax rate and favorable rules on dividends and royalties. As a hub for investment into the European Union, Cyprus ranks alongside Ireland and Malta.
