The double tax treaty between Cyprus and Lithuania entered into force on 1 January 2015, which was signed on June 2013.
Under the treaty the following withholding taxes will apply:
- Dividend: 0% if the recipient is the beneficial owner of at least 10% of the shares in the company paying the dividend, otherwise the maximum rate of withholding tax is 5%.
- Royalties: The maximum withholding tax on royalties is limited to 5%.
- Capital Gain: Gains derived by a resident of one contracting state from the alienation of immovable property situated in the other contracting state may be taxed in the contracting state in which the immovable property or the permanent establishment is situated.
- No withholding tax will be applied on Interest payments.
