Cyprus’s double tax treaties with Spain and Norway come into effect as of January 1, 2015.  All of the new treaties concluded by Cyprus are generally based on the Organisation for Economic Co-operation and Development (OECD) Model Tax Convention framework with a number of modifications.

TREATY WITH SPAIN 

The treaty with Spain applies to taxes on income as well as on gains from the alienation of movable or immovable property. In the case of Spain, the treaty covers the income tax on individuals, the corporation tax, the income tax on non-residents and capital tax. In the case of Cyprus, it covers personal and corporate income tax, the defense tax, the immovable property tax and capital gains tax.

The treaty was entered into force on 28 May 2014.

TREATY WITH NORWAY 

The treaty with Norway replaces the 1955 United Kingdom-Norway agreement, which was an extension of the 1951 treaty between the UK and Norway, which in turn applied to certain British colonies, including Cyprus. The new treaty applies to taxes on income as well as on gains from the alienation of movable or immovable property. In the case of Norway, it covers the national tax on income, the county municipal tax on income, the municipal tax on income, the national tax relating to petroleum activities and the national tax on remuneration of non-resident artists.

The new treaty was signed on 24 February 2014 and was entered into force on 8 July 2014.